Environmental and economic analysis of biofuel policies and impact of the expansion of biofuel policy on the world food markets.

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Biofuel production and utilization has been promoted all over the world. In this study, we researched for world biofuels policies and markets. We examined how biofuel polices would have impact on world food markets, using econometric simulation approach. We also estimated the CO2 efficiency of bio-ethanol production using Input Output analysis for a case study in Hokkaido, Japan. In this study, we conclude that bio-ethanol production brings a larger economic impact with a smaller increase in CO2 emission, thus contributing to the CO2 efficiency of a specific region.