Page 34 - Biofuels for a More Sustainable Future

28 Biofuels for a More Sustainable Future

Although the link between the market expansion of biofuels and food
prices seems to be blurred, Paris (2018) has shown a long-term relation
between biofuel production and the prices of several agricultural commod-
ities. The author has found evidence of a long-term effect of rising oil prices
on agricultural commodities price used for biofuels. Hence, this effect is
transmitted to other agricultural commodities through the substitution
effect. As claimed by the author, in the absence of biofuels production,
changes in oil prices do not affect agricultural commodities in the long
run, with the exception of rapeseed price that is affected by oil prices in
the long run (Paris, 2018).
Indeed, several other studies estimated the effect of biofuels production
on crop prices. Zhang et al. (2013) projected an increase of 5% to 53% on
corn prices in 2015. In addition, evidence was found for on average 2% to
3% increase in long-term corn prices, for each billion gallon of corn ethanol
produced across 19 studies (Condon et al., 2013).
The impact of biofuels production on food prices affects mostly devel-
oping countries where higher crop prices may lead to malnutrition and
starvation (Raman et al., 2015; Obidzinski et al., 2012). Furthermore,
incentives favoring the production of feedstocks in these countries and their
exportation in richer ones for biofuels production may generate location-
specific environmental risks and energy insecurity (Raman et al., 2015).
These sustainability issues are less stringent for second and third gener-
ation biomasses, based on residues, nonfood crops, and algae (Paris, 2018).
Moreover, the development of technologies for using waste as biomass can
contribute to the advancement of circular bioeconomy, minimizing the
social and environmental risks.

3.2 Rural development
Biofuels production has many benefits on rural development. Growing
and harvesting biomass, transportation, and new plant operations have
potential for new employment opportunities (Demirbas, 2017). In addi-
tion, farmers have the opportunity to increase their income and return
as the market for agricultural and forest residues expands and the produc-
tion of biofuels increases. The latter can have a positive impact on tradi-
tional industries, rural diversification, rural electricity supply, and soil
conservation. Also, environmental and landscape benefits can derive from
a revitalization of degraded forests and the utilization of excessive waste
streams for producing energy.