Impact of biofuel policies on agricultural commodities prices

Case of ethanol in the United States 2004 – 2013

Abstract

Biofuels offer a potential source of renewable energy and could open vast opportunities for agriculture, but the problem is that few biofuel programs are economically viable, and most of them have a high social and environmental costs, the upward pressure on food prices and increased competition for resources, it may create a potential conflict between food and fuel, and negative impacts on agricultural markets.

This study analyzes the impact of the biofuel development policy in the US on agricultural products, particularly cereals.