Biofuels: the food versus fuel debate.

Abstract

Abstract The increase in prices of food commodities since 2001, culminating in the food crisis of 2007/08 gave birth to the food versus fuel debate. Several studies over the past few years have pointed to biofuels as one of the culprits of the food crisis; although the magnitudes of impact in these studies vary widely depending on the underlying assumptions and structure of the models used for the analysis. The food versus fuel debate will accelerate if the expansion of crop-based or first-generation biofuels continues without appropriate arrangements for food security given that the global food demand is projected to double by 2050. The existing literature, in general, does not favour a large-scale diversion of food commodities towards production of biofuels at the global scale because it does not help much to substitute a significant portion of fossil fuels: instead, it simply puts substantial pressure on the global food supply. However, in some countries and regions where land supply is not an issue, production of biofuels should not be ruled out. Moreover, if regulated properly, biofuels could provide incentives to utilize abandoned and marginal lands for agricultural production, help improve agriculture intensification and generate employment in rural areas. In response to the food versus fuel debate, many countries have now focused on advanced biofuels that do not directly compete with food supply, although they do through land reallocations. Some countries have also designed policy framework to protect crop lands and natural forests from biofuel expansion. Some literature argues that intensification of agricultural, particularly in developing countries, would help address the food versus fuel debate, whereas others contend that any increase in agricultural production must be focused on meeting the growing food demand.