Report

Biofuels policies do increase food prices

September 14, 2017

Policies to promote food based biofuels do lead to increases in food prices, an extensive independent literature review has concluded. The analysis considered over one hundred economic modelling studies of the potential impact on prices of increased biofuel demand and over two dozen assessments of the role biofuels demand played in the 2006-08 food price crisis.

The size of the price resulting directly from biofuels varies depending on the study, feedstock and size of demand, but the overwhelming body of evidence shows significant price increases with a range of results from 16-171%/EJ biofuels produced, EU vegetable oils having the highest impact.

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