Abstract
One of the most crucial problems with increasing biofuel production is that it competes for natural and agricultural resources with food and food related use, because its main feedstock is agricultural product. Increasing biofuel production therefore is going to have an impact on world agricultural commodity prices and food security. The purpose of this study is to conduct an economic analysis of increasing biofuel production on food security. The own price elasticities of supply equations in the long-term are the key to deciding agricultural commodity price adjustments as a result of an increase in biofuel production. Biofuel production may have a negative impact on food security, but on the other hand they can create opportunities for agricultural development. It is critical to understand that own price elasticity of feedstock supply is a key factor in deciding how biofuel development can contribute agricultural development. Policy makers should recognize the importance of the price elasticity of feedstock supply when they promote biofuel programs and select feedstock to contribute to agricultural development.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.