Ethanol Expansion in the Food versus Fuel Debate: How Will Developing Countries Fare?

Abstract

Abstracthis paper examines the impact of ethanol expansion in the United States, brought about by higher crude oil prices, on agricultural commodity prices. Given the United States's stature as a major producer and exporter of many agricultural commodities, the resulting increase in commodity prices has spillover effects into the global market. Using the price changes estimated within a multi-commodity, multi-country agricultural modeling system, this paper attempts to show how an increase in world commodity prices would affect the costs of food baskets around the world and how higher food costs will impact food security, particularly in developing countries. In general, we find that countries where corn is the major food grain experience larger increases in food basket cost while countries where rice is the major food grain have smaller food basket cost increases. Countries where wheat and/or sorghum are the major food grains fall in between. Consequently, the highest percentage increases are seen in Sub-Saharan Africa and Latin America where food basket costs are estimated to increase by at least 10%. The lowest percentage increases are seen in Southeast Asia, with cost increases of less than 2.5%. AbstractThis paper examines the impact of ethanol expansion in the United States, brought about by higher crude oil prices, on agricultural commodity prices. Given the United States's stature as a major producer and exporter of many agricultural commodities, the resulting increase in commodity prices has spillover effects into the global market. Using the price changes estimated within a multi-commodity, multi-country agricultural modeling system, this paper attempts to show how an increase in world commodity prices would affect the costs of food baskets around the world and how higher food costs will impact food security, particularly in developing countries. In general, we find that countries where corn is the major food grain experience larger increases in food basket cost while countries where rice is the major food grain have smaller food basket cost increases. Countries where wheat and/or sorghum are the major food grains fall in between. Consequently, the highest percentage increases are seen in Sub-Saharan Africa and Latin America where food basket costs are estimated to increase by at least 10%. The lowest percentage increases are seen in Southeast Asia, with cost increases of less than 2.5%.

High food commodity prices: will they stay? who will pay?

“…reviewing over two dozen substantive reports and studies on the subject, all published in either 2007 or early 2008 (Abbott et al, 2008). Other notable contributions such as those by Collins (2008), Elliott (2008), Elobeid and Hart (2007), Mitchell (2008), OECD (2008), and Westhoff (2008) missed the cut, presumably either because they escaped the notice of the authors or because they were published after the cutoff date for inclusion.…”

Acute View Transport biofuels: Can they help limiting climate change without an upward impact on food prices?

“…Sugarcane, sugar beet, corn (maize) and wheat are important crops used for fuel ethanol production, whereas rapeseed (canola), soybean and oil palm are the most important feedstocks for biodiesel (Berndes and Hanson, 2007;Canakci and Sanli, 2008;Macedo et al, 2008;OECD, 2008;Sanchez and Cardona, 2008;von Braun, 2008). The expansion of transport biofuel production from such crops has an upward effect on food prices (Elobeid and Hart, 2007;OECD, 2008;von Braun, 2008). In 2008, the price rises for food have sparked a lively debate about the pros and cons of transport biofuels including their alleged climate benefits.…”

Mapping the Potential for Biofuel Production on Marginal Lands: Differences in Definitions, Data and Models across Scales

“…Pongam-perennial tree and Indian mustardoilseed crop (14) none none (2) 2011 Schweers et al [34] National (China)…”