The Impact Of The Development Of World Bio-energy On Food Security

The unprecedented price of world food during2008urged many learners toinvestigate the causes. Some of them attribute it to the bio-energy industry, whichbegan to flourish in the early twenty century, they think that the industry chooseedible cereal as raw materials,increasing the need for cereal,then leading to the foodcrisis. This paper aims to discuss the relationship between the development ofbio-energy and food crisis. In the course of development, bio-energy goes through thefirst generation and the second one, the latter no longer uses edible cereals as rawmaterials and being considered as the savior for food crisis. So we must answer if thefirst generation bio-energy can exist in the long term, as long as we want to analyzeits relationship with the food crisis. The second part in the paper mainly compares thetwo generation bio-energy based on the cost.The results combing with the aims tolower subsidies flow, increase the domestic farmers’ income and impose rotten cereals,proof that the first generation bio-energy can’t be substituted by the second one in theshort term. The third part mainly talks about the influencing factors on the firstgeneration bio-energy. Under the model of product life cycle (PLC), the author mainlyconsidered subsidies, R&D costs, price of substitute raw materials, political demandand so on, to study the best routine to achieve the highest profits if any of the factorschange. The fourth part analyzes the effect of bio-energy development on food pricewith the empirical method, and its conduction role between the price of food and thatof oil, with ethanol and biodiesel industry as examples. And then with the graycorrelation analysis method, the author studies the relationship between the balance ofworld food production and consumption by bio-energy industry and food prices. Boththe two methods prove that the development of bio-energy industry truly affect thefood price. The fifth part puts forward corresponding policies, mainly on china’s foodsecurity, according to the above empirical results.