The Impact of Biofuel Energy Consumption on GDP Growth, Co₂ Emission, Agricultural Crop Prices, and Agricultural Production

Abstract

This study investigates the impact of biofuel energy on economic growth, pollution, agriculture price level, and total agriculture production in 16 major biofuel energy consuming countries. The panel model is used in this study taking the period of 2000–2010. The results show that biofuel energy increases GDP growth and reduces the level of pollution. However, it increases both agriculture production and agriculture crop prices. Since biofuel energy promotes GDP growth and reduces the level of pollution, it is recommended that these countries should conduct strategies to increase their biofuel energy without causing an increase in agriculture price level.

Keywords:

• Biofuel energy consumption
• Biofuel energy production
• GDP growth
• CO₂
• Agriculture prices