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Secondly, because biofuels were thought to be greener than fossil fuels since the amount of greenhouse gases that are emitted during combustion is equivalent to the amount it absorbs in its lifetime.
As such, many countries rushed to provide generous policies to encourage the production and use of biofuels.
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Additionally, as some crops, such as corn become more profitable to grow because of biofuel subsidies, farmers switch to planting them and reduce their plantings of other types of crops. government explains the relationship between US biofuel policy and food prices, “Reductions in U. exports of corn and other crops lead to higher, world commodity prices. S., it is easy to plant less soybeans and more corn when the price of corn doubles, as occurred recently. so we are a major contributor to the increase in vegetable oil and palm oil prices.” In Europe, sunflower oil and rapeseed oil that were previously produced for consumption are now being used as biofuels to generate “green” energy.
This lowers the market supply of the other crops and drives up overall prices. Increased demand for vegetable oils to meet this new energy need, along with increased demand from population growth, continues to drive up prices.
Fuel-friendly Policies over Food Security A Goldman Sachs report says that forty-one countries are currently pursuing policies to promote the use of biofuels over the next decade.
You don't have to imagine with XXXConnect's mobile app.With thousands joining daily, you will never get bored and always have new and exciting matches.If you are a traveller, you can hook up anywhere, anytime, just re-adjust your search options!Although this demand comprises a relatively small portion of total crop demand, about 5.5 percent, the report adds that biofuel production will remain a key driver of strong agriculture demand growth in the coming years, primarily owing to government policies for biofuel usage.
Most of the countries with biofuel production and usage policies are in the northern hemisphere while the most efficient crops for production are in the southern hemisphere.The growth of the biofuel industry has triggered increases not only in the prices of corn, oilseeds, and other grains but also in the prices of seemingly unrelated crops and products.