Food Market Effects of a Global Resource Shift Toward Bioenergy

Food prices have been rising in general because increasing demand has outstripped supply for several reasons and biofuels are only one of the factors. Although bioenergy is a broader category, including the direct combustion of biomass, the primary current interest is in liquid biofuels. The first section of this paper examines more closely the past, current, and potential future increases in global biofuels production. The second section looks at the rise in agricultural prices and attempts to assess how much of the increase can be attributed to biofuels. An explanation of the direct link established between food and crude oil prices by crop-based biofuels is detailed in the third section, along with a discussion of the food versus fuel debate. The fourth section looks at the potential impacts of biofuels on food security and the environment. The paper concludes with some thoughts regarding the future of bioenergy.