FSI researchers examine the role of energy sources from regulatory, economic and societal angles. The Program on Energy and Sustainable Development (PESD) investigates how the production and consumption of energy affect human welfare and environmental quality. Professors assess natural gas and coal markets, as well as the smart energy grid and how to create effective climate policy in an imperfect world. This includes how state-owned enterprises – like oil companies – affect energy markets around the world. Regulatory barriers are examined for understanding obstacles to lowering carbon in energy services. Realistic cap and trade policies in California are studied, as is the creation of a giant coal market in China.
Introduction to the Problem: Agricultural productivity is highly dependent on climate variability and is thus susceptible to future changes including temperature extremes and drought. The latter is expected to increase in frequency regionally over this century.
U.S. ethanol policy may be the single most significant contributor to world food price instability, states a Stanford study on the global costs of American ethanol. The rapid rise of biofuels has tied energy and agricultural markets together, making it difficult to assess one without understanding the other.
The price of corn recently hit an all time high, a departure from a long-term trend that has seen the cost of corn decline with each passing decade. Price spikes have happened before, and some experts viewed the latest jump as part of this familiar cycle. Stanford food policy economists Rosamond L. Naylor and Walter P. Falcon alternatively argue in a new paper released in The American Interest that we have entered a new era where agricultural commodity prices are increasingly driven by U.S. biofuel policies. This food and fuel linkage has, and will continue to have, major implications for global food prices and the world’s poor.
Over the last decade, the U.S. ethanol industry experienced a major increase in production and consumption as a result of beneficiary of tax breaks, tariffs and government mandates. In 2005, MTBE was phased out as a gasoline additive because of environmental and health risks, and ethanol became the preferred MTBE substitute. Production was further supported with a mandate to reach a minimum target of 15 billion gallons by 2015.
A jump in the price of crude oil gave a further boost to ethanol as a potential replacement for petroleum. As a result, 40% of the U.S. corn crop is now devoted to ethanol production. These policies have been promoted under the banner of protecting the American farm industry, securing energy independence, and decreasing greenhouse gas emissions, and they have succeeded on a number of these fronts.
However, as a major global producer and exporter of corn, the rapid rise of ethanol production in the U.S. during such a short period of time has produced a fundamental change in the structure of demand for corn. Increased demand has led to higher and more volatile food prices, not only for corn but other agricultural commodities. If the United States, along with the rest of the G-20, is serious about stabilizing global food prices, U.S. domestic biofuels policy in its entirety will need to be re-examined.
High prices are a boon to the U.S. farm sector, but can be devastating for poor consumers with minimal income to spend on food. Food riots have broken out in several countries suggesting the new volatility in the price of staple crops has had a severe impact on developing economies. Where once the policies of the U.S. helped keep agricultural prices on an even keel, current support for the production of corn-based ethanol has reversed this stabilizing role.
Given the bullish financial outlook for the U.S. agricultural sector, this is an ideal time to begin dismantling both ethanol and corn (and other major commodity) subsidies. Corn-based ethanol tax and tariff provisions together cost the federal government around $6 billion annually. Cutting these subsidies would help reduce the Federal budget deficit without harming the rural economy.
The trickier political and economic questions relate to reassessing mandates, and are likely off the table with the 2012 elections approaching. This is unfortunate, for these policies will continue to cause unrest in food markets far beyond American shores.
Indonesia is currently the world’s top palm oil producer. Since the 1980s total land area planted to palm oil has increased by over 2,100 percent growing to 4.6 million hectares – the equivalent of six Yosemite National Parks. Plantation growth has predominately occurred on deforested native rainforest with major implications for global carbon emissions and biodiversity.
World leaders are focused on agricultural supply data, insurance schemes and speculation as they try to quell volatility in global food markets. They should also turn their attention to perhaps the leading cause of price instability: U.S. ethanol policy.
Five years ago, few if any food or energy experts predicted that 40 percent of the U.S. corn crop in 2011 would be devoted to ethanol production. Nor did they imagine: that corn prices would reach all-time highs at $8 per bushel ($275 per metric ton); that July futures prices for corn in Chicago would exceed those for wheat; that the United States would be exporting ethanol to Brazil; or that an Iowa Senator would co-sponsor a bill to reduce corn-based subsidies just prior to the Iowa Caucuses for the 2012 primary season. What has caused these extraordinary circumstances? And what are the economic, political and food-security implications of a revolution in demand that has caught both economists and political leaders unaware?
Center on Food Security and the Environment
473 Via Ortega, room 365
Stanford, CA 94305-4205
(650) 721-2203
0
hertel@purdue.edu
Cargill Visiting Fellow
thomas_hertel.jpg
PhD
Hertel is a Distinguished Professor of Agricultural Economics at Purdue University. His research focuses on the economy-wide impacts of global trade and environmental policies with a particular interest in the impacts of energy and climate policies on global land use and poverty. He is also Executive Director, and founder of the Center for Global Trade Analysis, and Past-President of the Agricultural and Applied Economics Association (AAEA).
During his stay at Stanford he undertook research into the impacts of climate change and climate policy on agriculture, food security and poverty. In the winter quarter he co-taught an FSE seminar (with David Lobell) on the long run determinants of global agricultural land use.
Policies promoting ethanol and biodiesel production and use in the U.S., Europe, and other parts of the world since the mid-2000s have had profound—and largely unintended—consequences on global food prices, agricultural land values, land acquisition, and food security in developing countries. They have also created regional opportunities in the form of agricultural investments, crop yield growth, and booming farm economies. Rising incomes in emerging economies are generating increased demand for transportation fuels, thus stimulating further growth of the global biofuel industry. This seminar will explore the politics, economics, and global food security implications of the expanding biofuel sector. Several policy questions will be raised, including the role of biofuel mandates on food prices, the role of trade policies for stabilizing food prices in an era of increasingly tight demand, and the role of land policies and institutions for feedstock production and income distribution in the developing world.
Siwa Msangi, Senior Research Fellow in the Environment and Production Technology Division at the International Food Policy Research Institute (IFPRI) will provide commentary. Msangi's work focuses on the major socio-economic and bio-physical drivers affecting agricultural production and trade, and their impacts on nutrition, poverty and the environment. Dr. Msangi manages a research portfolio that includes the economic and environmental implications of biofuels, and has coordinated the project Biofuels and the Poor in partnership with FSE.
The Jerry Yang and Akiko Yamazaki
Environment and Energy Building
Stanford University
473 Via Ortega, Office 363
Stanford, CA 94305
(650) 723-5697
(650) 725-1992
0
roz@stanford.edu
Senior Fellow, Stanford Woods Institute and Freeman Spogli Institute for International Studies
William Wrigley Professor of Earth System Science
Senior Fellow and Founding Director, Center on Food Security and the Environment
Roz_low_res_9_11_cropped.jpg
PhD
Rosamond Naylor is the William Wrigley Professor in Earth System Science, a Senior Fellow at Stanford Woods Institute and the Freeman Spogli Institute for International Studies, the founding Director at the Center on Food Security and the Environment, and Professor of Economics (by courtesy) at Stanford University. She received her B.A. in Economics and Environmental Studies from the University of Colorado, her M.Sc. in Economics from the London School of Economics, and her Ph.D. in applied economics from Stanford University. Her research focuses on policies and practices to improve global food security and protect the environment on land and at sea. She works with her students in many locations around the world. She has been involved in many field-level research projects around the world and has published widely on issues related to intensive crop production, aquaculture and livestock systems, biofuels, climate change, food price volatility, and food policy analysis. In addition to her many peer-reviewed papers, Naylor has published two books on her work: The Evolving Sphere of Food Security (Naylor, ed., 2014), and The Tropical Oil Crops Revolution: Food, Farmers, Fuels, and Forests (Byerlee, Falcon, and Naylor, 2017).
She is a Fellow of the Ecological Society of America, a Pew Marine Fellow, a Leopold Leadership Fellow, a Fellow of the Beijer Institute for Ecological Economics, a member of Sigma Xi, and the co-Chair of the Blue Food Assessment. Naylor serves as the President of the Board of Directors for Aspen Global Change Institute, is a member of the Scientific Advisory Committee for Oceana and is a member of the Forest Advisory Panel for Cargill. At Stanford, Naylor teaches courses on the World Food Economy, Human-Environment Interactions, and Food and Security.
Pinstrup-Andersen, H.E. Babcock Professor of Food, Nutrition and Public Policy and J. Thomas Clark Professor of Entrepreneurship at Cornell University will talk about new evidence on the linkages among agriculture, nutrition, and health, with a special emphasis on sub-Saharan Africa. Currently lost in debate—growing more food does not necessarily lead to better nutrition or health unless other things are put in place. Pinstrup-Aandersen is a world-renowned specialist on undernutrition, health, poverty, and food, and in 2001 was named World Food Prize Laureate.
Eran Bendavid, Assistant Professor of Medicine (infectious diseases) and CHP/PCOR Associate, will provide additional commentary. Bendavid was trained at Harvard Medical School, and is currently a FSE collaborator on a rural health and development project that examines the links between food production, health, water and nutrition in sub-Saharan Africa.
Per Pinstrup-Andersen
H.E. Babcock Professor of Food, Nutrition and Public Policy, J. Thomas Clark Professor of Entrepreneurship
Speaker
Cornell University
Encina Commons, Room 102,
615 Crothers Way,
Stanford, CA 94305-6019
(650) 723-0984
(650) 723-1919
0
ebd@stanford.edu
Professor, Medicine
Professor, Health Policy
Senior Fellow, by courtesy, Freeman Spogli Institute for International Studies
Senior Fellow, Woods Institute for the Environment
eran_bendavid
MD, MS
My academic focus is on global health, health policy, infectious diseases, environmental changes, and population health. Our research primarily addresses how health policies and environmental changes affect health outcomes worldwide, with a special emphasis on population living in impoverished conditions.
Our recent publications in journals like Nature, Lancet, and JAMA Pediatrics include studies on the impact of tropical cyclones on population health and the dynamics of SARS-CoV-2 infectivity in children. These works are part of my broader effort to understand the health consequences of environmental and policy changes.
Collaborating with trainees and leading academics in global health, our group's research interests also involve analyzing the relationship between health aid policies and their effects on child health and family planning in sub-Saharan Africa. My research typically aims to inform policy decisions and deepen the understanding of complex health dynamics.
Current projects focus on the health and social effects of pollution and natural hazards, as well as the extended implications of war on health, particularly among children and women.
Specific projects we have ongoing include:
What do global warming and demographic shifts imply for the population exposure to extreme heat and extreme cold events?
What are the implications of tropical cyclones (hurricanes) on delivery of basic health services such as vaccinations in low-income contexts?
What effect do malaria control programs have on child mortality?
What is the evidence that foreign aid for health is good diplomacy?
How can we compare health inequalities across countries? Is health in the U.S. uniquely unequal?
Roz Naylor will be lecturing on climate variability, rice production, and food policy in Indonesia as part of Brown University's conference on Climate Change and its Impacts. This conference will focus on changes in the supply of and demand for water in the 21st century, due both to changes in regional climate and to human population growth and development patterns. Major themes will include predicted changes in regional hydrologic cycles; resilience of existing social, economic, civil, ecological, and agricultural systems to likely changes; the potential of global and local institutions to increase the resilience of these systems; and what can be learned from one region to inform effective design of policies and water management structures in other regions.
The conference is part of a larger institutional effort under the Brown International Advanced Research Institutes (BIARI). Throughout the Institute, participants will focus on developing interdisciplinary research through communication and joint development of projects.
The Jerry Yang and Akiko Yamazaki
Environment and Energy Building
Stanford University
473 Via Ortega, Office 363
Stanford, CA 94305
(650) 723-5697
(650) 725-1992
0
roz@stanford.edu
Senior Fellow, Stanford Woods Institute and Freeman Spogli Institute for International Studies
William Wrigley Professor of Earth System Science
Senior Fellow and Founding Director, Center on Food Security and the Environment
Roz_low_res_9_11_cropped.jpg
PhD
Rosamond Naylor is the William Wrigley Professor in Earth System Science, a Senior Fellow at Stanford Woods Institute and the Freeman Spogli Institute for International Studies, the founding Director at the Center on Food Security and the Environment, and Professor of Economics (by courtesy) at Stanford University. She received her B.A. in Economics and Environmental Studies from the University of Colorado, her M.Sc. in Economics from the London School of Economics, and her Ph.D. in applied economics from Stanford University. Her research focuses on policies and practices to improve global food security and protect the environment on land and at sea. She works with her students in many locations around the world. She has been involved in many field-level research projects around the world and has published widely on issues related to intensive crop production, aquaculture and livestock systems, biofuels, climate change, food price volatility, and food policy analysis. In addition to her many peer-reviewed papers, Naylor has published two books on her work: The Evolving Sphere of Food Security (Naylor, ed., 2014), and The Tropical Oil Crops Revolution: Food, Farmers, Fuels, and Forests (Byerlee, Falcon, and Naylor, 2017).
She is a Fellow of the Ecological Society of America, a Pew Marine Fellow, a Leopold Leadership Fellow, a Fellow of the Beijer Institute for Ecological Economics, a member of Sigma Xi, and the co-Chair of the Blue Food Assessment. Naylor serves as the President of the Board of Directors for Aspen Global Change Institute, is a member of the Scientific Advisory Committee for Oceana and is a member of the Forest Advisory Panel for Cargill. At Stanford, Naylor teaches courses on the World Food Economy, Human-Environment Interactions, and Food and Security.
More than two-thirds of the population in Africa must leave their home to fetch water for drinking and domestic use. It is estimated that some 40 billion hours of labor each year are spent hauling water, a responsibility often borne by women and children. Cutting the walking time to a water source by just 15 minutes can reduce under-five mortality of children by 11 percent, and slash the prevalence of nutrition-depleting diarrhea by 41 percent.
FSI researchers examine the role of energy sources from regulatory, economic and societal angles. The Program on Energy and Sustainable Development (PESD) investigates how the production and consumption of energy affect human welfare and environmental quality. Professors assess 
