Fossil-Fuels, Bio-Fuels, and Food: Ranking Priorities


Guilherme Leite da Silva Dias  – University of São Paulo

Joaquim José Martins Guilhoto  – University of São Paulo

Abstract: This paper deals with the question of the trade-offs between bio-fuels, fossil-fuels, and food. To do so an analysis is conducted taking into consideration the differences in relative prices and in the productive structure among the countries. The results shows that in general food puts a greater stress over the economies than energy does, and mainly in the developing economies. As a consequence of that, the possibilities for the growing use of bio-fuels is limited and restrict to countries where it is possible to have an expansion of bio-fuel production without compromising the production of food and without putting more stress over the environment. This, by its turn, restricts the possibilities for a world policy of bio-fuels with the consequence that bilateral agreements would be the dominant ones.

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