Food vs. fuel

Corn vs Ethanol production in the United States
  Total corn production (bushels) (left)
  Corn used for Ethanol fuel (bushels) (left)
  Percent of corn used for Ethanol (right)
An ethanol fuel plant under construction, Butler County, Iowa

Food versus fuel is the dilemma regarding the risk of diverting farmland or crops for biofuels production to the detriment of the food supply. The biofuel and food price debate involves wide-ranging views and is a long-standing, controversial one in the literature.[1][2][3][4] There is disagreement about the significance of the issue, what is causing it, and what can or should be done to remedy the situation. This complexity and uncertainty are due to the large number of impacts and feedback loops that can positively or negatively affect the price system. Moreover, the relative strengths of these positive and negative impacts vary in the short and long terms, and involve delayed effects. The academic side of the debate is also blurred by the use of different economic models and competing forms of statistical analysis.[5]

Biofuel production has increased in recent years. Some commodities, like maize (corn), sugar cane or vegetable oil can be used either as food, feed, or to make biofuels. For example, since 2006, a portion of land that was also formerly used to grow food crops in the United States is now used to grow corn for biofuels, and a larger share of corn is destined for ethanol production, reaching 25% in 2007.[6] Oil price increases since 2003, the desire to reduce oil dependency, and the need to reduce greenhouse gas emissions from transportation have together increased global demand for biofuels. Increased demand tends to improve financial returns on production, making biofuel more profitable and attractive than food production. This, in turn, leads to greater resource inputs to biofuel production, with correspondingly reduced resources put towards the production of food. Global food security issues may result from such economic disincentives to large-scale agricultural food production. There is, in addition, potential for the destruction of habitats with increasing pressure to convert land use to agriculture, for the production of biofuel.[7] Environmental groups have raised concerns about these potential harms for some years,[8][9][10][11] but the issues drew widespread attention worldwide due to the 2007–2008 world food price crisis.

Second-generation biofuels could potentially provide solutions to these negative effects. For example, they may allow for combined farming for food and fuel, and electricity could be generated simultaneously.[12] This could be especially beneficial for developing countries and rural areas in developed countries.[13] Some research suggests that biofuel production can be significantly increased without the need for increased acreage.[14][15][16]

Biofuels are not a new phenomenon. Before industrialisation, horses were the primary (and probably the secondary) source of power for transportation and physical work, requiring food. The growing of crops for horses (typically oats) to carry out physical work is comparable to the growing of crops for biofuels used in engines. However, the earlier, pre-industrial "biofuel" crops were at smaller scale.

Brazil has been considered to have the world's first sustainable biofuels economy,[17][18][19] and its government claims Brazil's sugar cane-based ethanol industry did not contribute to the 2008 food crisis.[19][20] A World Bank policy research working paper released in July 2008[21] concluded that "large increases in biofuel production in the United States and Europe are the main reason behind the steep rise in global food prices" and also stated that "Brazil's sugar-based ethanol did not push food prices appreciably higher.".[22][23] However, a 2010 study also by the World Bank concluded that their previous study may have overestimated the contribution of biofuel production, as "the effect of biofuels on food prices has not been as large as originally thought, but that the use of commodities by financial investors (the so-called "financialization of commodities") may have been partly responsible for the 2007/08 spike."[24] A 2008 independent study by the OECD also found that the impact of biofuels on food prices are much smaller.[25]

  1. ^ Maggie Ayre (3 October 2007). "Will biofuel leave the poor hungry?". BBC News. Retrieved 28 April 2008.
  2. ^ Mike Wilson (8 February 2008). "The Biofuel Smear Campaign". Farm Futures. Archived from the original on 9 February 2008. Retrieved 28 April 2008.
  3. ^ Michael Grundwald (27 March 2008). "The Clean Energy Scam". Time. Archived from the original on 30 March 2008. Retrieved 28 April 2008.
  4. ^ The Impact of US Biofuel Policies on Agricultural Price Levels and Volatility Archived 10 August 2017 at the Wayback Machine, By Bruce A. Babcock, Center for Agricultural and Rural Development, Iowa State University, for ICTSD, Issue Paper No. 35. June 2011.
  5. ^ HLPE (June 2013). "Biofuels and food security" (PDF).
  6. ^ Kathleen Kingsbury (16 November 2007). "After the Oil Crisis, a Food Crisis?". Time. Archived from the original on 27 October 2011. Retrieved 28 April 2008.
  7. ^ Andrew Bounds (10 September 2007). "OECD Warns Against Biofuels Subsidies". Financial Times.
  8. ^ George Monbiot (23 November 2004). "Feeding Cars, Not People". Monbiot.com. Retrieved 28 April 2008.
  9. ^ European Environmental Bureau (8 February 2006). "Biofuels no panacea" (PDF). Archived from the original (PDF) on 10 April 2008. Retrieved 28 April 2008.
  10. ^ Planet Ark (26 September 2005). "Food Security Worries Could Limit China Biofuels". Archived from the original on 11 January 2006. Retrieved 28 April 2008.{{cite web}}: CS1 maint: unfit URL (link)
  11. ^ Greenpeace UK (9 May 2007). "Biofuels: green dream or climate change nightmare". Archived from the original on 21 April 2008. Retrieved 28 April 2008.
  12. ^ Ocheni, S. I.; Ogbaga, C. C.; Mohammed, S. S. D.; Mangse, G. (2022). "Generating Bioelectricity from Traditional Food Processing Wastewater Using an Inoculum of Return Activated Sewage Sludge". Innovations and Interdisciplinary Solutions for Underserved Areas. Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering. Vol. 449. pp. 187–194. doi:10.1007/978-3-031-23116-2_15. ISBN 978-3-031-23115-5.
  13. ^ Oliver R. Inderwildi; David A. King (2009). "Quo Vadis Biofuels". Energy & Environmental Science. 2 (4): 343. doi:10.1039/b822951c.
  14. ^ See for example: the US (DOE and USDA) "Billion Ton Report": "Archived copy" (PDF). Archived from the original (PDF) on 25 August 2008. Retrieved 23 July 2008.{{cite web}}: CS1 maint: archived copy as title (link) or an EU (Refuel) report "Refuel.eu is for sale!" (PDF). Archived from the original (PDF) on 11 September 2008. Retrieved 23 July 2008.
  15. ^ "Food and Fuel II - Biofuels will help fight hunger". International Herald Tribune. 6 August 2007. Retrieved 15 April 2008.
  16. ^ "Response: Lord Oxburgh: Through biofuels we can reap the fruits of our labours". the Guardian. 28 February 2008. Retrieved 22 September 2015.
  17. ^ Inslee, Jay; Bracken Hendricks (2007), Apollo's Fire, Island Press, Washington, D.C., pp. 153–155, 160–161, ISBN 978-1-59726-175-3, . See Chapter 6. Homegrown Energy.
  18. ^ Larry Rother (10 April 2006). "With Big Boost From Sugar Cane, Brazil Is Satisfying Its Fuel Needs". The New York Times. Retrieved 28 April 2008.
  19. ^ a b "Biofuels in Brazil: Lean, green and not mean". The Economist. 26 June 2008. Archived from the original on 1 March 2021. Retrieved 30 July 2008.
  20. ^ Julia Duailibi (27 April 2008). "Ele é o falso vilão". Veja (in Portuguese). Archived from the original on 6 May 2008. Retrieved 28 April 2008.
  21. ^ Donald Mitchell (July 2008). "A note on Rising Food Crisis" (PDF). The World Bank. Retrieved 29 July 2008.Policy Research Working Paper No. 4682. Disclaimer: This paper reflects the findings, interpretation, and conclusions of the authors, and do not necessarily represent the views of the World Bank
  22. ^ "Etanol não influenciou nos preços dos alimentos". Veja (in Portuguese). Editora Abril. 28 July 2008. Archived from the original on 10 February 2009. Retrieved 29 July 2008.
  23. ^ "Biofuels major driver of food price rise-World Bank". Reuters. 28 July 2008. Retrieved 29 July 2008.
  24. ^ Cite error: The named reference WorldBank_07_10 was invoked but never defined (see the help page).
  25. ^ Cite error: The named reference OECD_07_08 was invoked but never defined (see the help page).