Kevin lynch economics of food markets tuesday 16 th january 2008 trinity college dublin
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What are the main criticisms economists make of EU biofuels policy? PowerPoint PPT Presentation


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Kevin Lynch Economics of Food Markets Tuesday, 16 th January 2008 Trinity College, Dublin. What are the main criticisms economists make of EU biofuels policy?. Motivations for Policies. 1. Climate Change 2. Energy Security: unstable or unfavourable regimes, rising prices, peak oil

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What are the main criticisms economists make of EU biofuels policy?

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Kevin lynch economics of food markets tuesday 16 th january 2008 trinity college dublin

Kevin Lynch

Economics of Food Markets

Tuesday, 16th January 2008

Trinity College, Dublin

What are the main criticisms economists make of EU biofuels policy?


Motivations for policies

Motivations for Policies

1. Climate Change

2. Energy Security: unstable or unfavourable regimes, rising prices, peak oil

3. Rural development


Incorrect tools

Incorrect tools

Demand side measures

A Carbon Tax?

  • Climate Change – reduces carbon directly

  • Security conservation

  • Budgetary pressures of subsidies

  • Uncertainity

    Command and control if inefficient and proposes a solution rather than identifies a problem


General equilibrium approach

General Equilibrium Approach

Life cycles

Complex interactions with food and energy markets

Technically complex – factor markets

Opportunity cost with food


Trade policy

Trade policy

Protectionism flourishing

Simulations show a strong link between trade and development of bio-fuels

Favouring home grown solutions – a new CAP?

Infant Industry argument

Time scale

Feasibility


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