Biofuels Policy, Energy and Food: A Case for Review
13 Pages Posted: 11 Oct 2009
Date Written: May 30, 2008
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.
Keywords: Biofuels policy, Agriculture, Food crisis, Energy, Liquid fuels, Ethanol, Biodiesel, Commodity prices
JEL Classification: Q00, Q18, Q42, Q48, N57, O13
Suggested Citation: Suggested Citation