Second generation biofuels and food crops: Co-products or competitors?

Stylized experiments of an economic model show that second generation biofuels can hurt or help food security. Impacts depend critically on whether the feedstock competes with traditional crops or is a co product in their production. Dedicated biomass, like warm season grasses, likely competes at least somewhat with food crop production. To the extent that agricultural land is allocated to dedicated biomass, food prices will increase. Biofuel from crop residues, such as corn stover and wheat straw, can lead to more land in these uses, potentially reducing food and feed prices. Second generation biofuel impacts also depend on policy mechanisms and market context. For example, the US biofuel mandates that encourage new biofuels might limit their ability to displace other biofuels. (C) 2013 Elsevier B.V. All rights reserved.