The World's #1 Renewable Energy Network for News, Information, and Companies.

World Bank: Biofuels Didn't Cause Grain Price Booms

A new white paper from the World Bank's Development Prospects Group concludes that biofuels were not the main reason for the spike in grain prices from 2006 to 2008.

While demand for ethanol was a factor, the authors of the report say that rising energy prices, speculation in the futures market and poor weather conditions in certain regions played equally important roles. Between 2000 and 2008, the price of food commodities doubled, according to the report.

“We conjecture that index fund activity (one type of 'speculative' activity among the many that the literature refers to) played a key role during the 2008 price spike. Biofuels played some role too, but much less than initially thought,” write the authors.

The biofuels industry has been commonly blamed for causing record highs in grain prices and food shortages in the developing world. This report looks at a variety of factors involved and shows that biofuels production – while certainly a factor – was only one among many.

Rather than blame one sector, the authors encourage stakeholders to evaluate the interconnected factors that contributed to the problem.

“What type of measures would be more pertinent to mitigate any undesired effects of price variability would depend on the better understanding of the factors that not only affect, but also potentially alter, long? term price trends,” write the authors.

You can read the report here.

RELATED ARTICLES

Beach sand

Italian Company Uses Sun-Heated Sand to Produce Energy

Flavia Rotondi and Alessandra Migliaccio, Bloomberg

Italy’s well-known sun and sand form the basis of many beach holidays. An Italian company has also found another purpose for the combination: energy production.

Biofuels

Who Is Weathering the $50 Oil Storm in Biofuels, and How?

Jim Lane, Biofuels Digest A period of lower-cost oil has, famously, descended on the market, reminding us that business models should always take into account “black swan” economic events such as the battle between OPEC and unconventional oil produc...

Biomass Plant Generates Electricity and Opportunity for UK Community

The Sleaford Renewable Energy Plant, a straw-fired combined heat and power plant in predominantly agricultural Lincolnshire, UK, provides environmental, financial, and social benefits to its community and to the country, st...

First Anniversary of The Balkan Floods Highlights Renewable Energy Market Opportunities

Ilias Tsagas, Contributor One year ago this month, severe flooding in Serbia, Bosnia-Herzegovina and Croatia killed 79 people, displaced about half a million and caused economic paralysis of the region. In the wake of these the catastrophic events, ...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

International Fuel Ethanol Workshop & Expo

Now in its 31st year, the FEW provides the global ethanol industry with...

Green Energy Summer School: Introduction to Bioenergy

This introductory course gives a detailed overview of the principles of ...

23rd European Biomass Conference and Exhibition

A world class renowned event for dialogue between research, industry, po...

COMPANY BLOGS

US Energy Grid Review Finds Needed Upgrades Would Allow More Solar,...

Yesterday (April 21) the U.S. Department of Energy released the first Qu...

Clean Energy Patents Rise in 2014, Solar Tops others, Toyota and GM...

U.S. patents for Clean Energy technologies in 2014 were again at an all ...

Environmentally friendly solutions for projects

geoAMPS joins the celebration of the worldwide observance of Earth Day o...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS