69th International Atlantic Economic Conference

March 24 - 27, 2010 | Prague, Czech Republic

Food, Bio Fuels, and Integration of the Americas:  Conflicts and Complementarities

Saturday, 27 March 2010: 11:15
Jorge Madeira Nogueira, Ph.D. , Economics, University of Brasília., Brasília, Brazil
Junia Rodrigues de Alencar, Ph.D. , Brazilian Agricultural Research Enterprise (Embrapa), Brasília, Brazil
Levon Yeganiantz, Ph.D. , Brazilian Agricultural Research Enterprise (Embrapa), Brasília, Brazil
Objectives:
It is argued that a potential change in global energy matrix in favour of bio fuels has its limitations, especially in terms of competition between production of food and of bio fuels. Frequently mentioned limiting factors are land and water. However, it has received much less attention in the literature that this situation of potential conflict varies among continents. Both the Americas and Oceania have more potential of complementarities between those two aims. Africa's development potential of bio fuels is also significant. In Europe and Asia fossil energy dependence on the Middle East is expected to continue, bio fuels alternatives seem to be more limited. Our main objective in this paper is to show that energy independence in the Americas may be supplied by an energy integration based upon cooperation of Argentina, Brazil, Canada, Mexico, the United States and Venezuela.
Data/Methods:
We show, using data from several different secondary sources and based upon three different scenarios, that this energy integration can be achieved without harming the food supply during the next five decades. The main sources of data are census, official reports, and scientific and technical studies from each country analyzed. Using different price-elasticity of demand and supply and income-elasticity of demand for food and energy, we simulate demand possibilities and supply necessities for the Americas over the n ext to generations.
Results:
This study demonstrates the potential for collaboration in energy supply between American countries. Most parts of the Americas are located in the tropical region where there is a greater efficiency of biomass production that can diversify the energy matrix. To avoid any potential conflict is recommended to give priority to bio fuels alternatives that are not used as food stables, to take the precaution of not using land for food production to produce bio fuels and to increase, in particular, the productivity of water to produce food and bio fuels. This paper suggests the possibility of initiating dialogue in terms of scientific-technological cooperation for harmonious development between food and energy as a way to generate employment and promote social inclusion and a better distribution of wealth between countries in the Americas.