"The Effect of Biofuel Policies on Food Grain Prices," with Harry de Gorter, Cornell University. Friday, September 23, 3:40 PM to 5 PM, 368A Heady Hall.

Harry de Gorter is a professor in the Charles H. Dyson School of Applied Economics and Management at Cornell University. His specialty is agricultural trade policy with much of his recent work in the areas of biofuels and agricultural policy reform and the Doha Development Agenda. He is also currently working on renewable electricity policy, carbon offsets, and cap and trade. Recent papers have focused on the economics of biofuel policies and the implications for carbon mitigation, WTO disciplines on agriculture, alternative agricultural import barriers, domestic subsidy programs and export subsidies, and the impact of trade liberalization.

This lecture will outline the mechanics of the various ways biofuels and farm policies can impact the level and volatility of food grain commodity prices. Emphasis will be given on the interaction effects between biofuel/farm policies within a country and between countries. de Gorter will also discuss how biofuel policy changes the traditional analysis of price volatility in grain markets with the supply of storage model, and will analyze the conjecture that grain prices may be less volatile than if no ethanol existed. The lecture will consider whether US corn-ethanol production is possible without supporting policies, what impacts biofuel policy has on food grain prices, and to what extent biofuel policy contributes to inefficient agricultural policies.