Biofuels Policy, Energy and Food: A Case for Review

Abstract:     
Biofuels policies in Australia and globally have been made less effective by a structural increase in the real value of agricultural commodities. To explain why, this paper describes Australia’s biofuels policy and its key objectives, and examines how a sustained increase in agricultural prices driven by a fundamental shift in global demand has eroded the effectiveness of the policy in meeting those objectives. An alternative policy approach is presented along with a brief discussion of the potential barriers to its implementation.

Number of Pages in PDF File: 13

Keywords: Biofuels policy, Agriculture, Food crisis, Energy, Liquid fuels, Ethanol, Biodiesel, Commodity prices

JEL Classification: Q00, Q18, Q42, Q48, N57, O13

working papers series