Effects of Biofuels on Agricultural Development, Food Security, Poverty and the Environment in the Philippines

With rising concerns over the sustainability of relying on traditional non-renewable energy sources and the potential negative environmental impacts of extracting fossil fuels, governments explored alternative sources of energy and aggressively pushed for biofuel production. This two-year study measured the potential economic impact of biofuel production in the Philippines, with the goal of contributing to the formulation of appropriate policies on biofuel development that can be useful to national policymakers, local planners and decision-makers. Such policies can also be useful to industry leaders, subsistence farmers, and poor consumers with limited access to goods and services.

The results of a rigorous scientific assessment showed that based on projected increases in the output and domestic demand for biofuels, in the value added of various sectors, and in real food expenditures, allowing the Philippine biofuels industry to respond to economic incentives is favorable to the country’s economy.

The study also examined the environmental impacts of producing bio-fuels, in the context of farm expansion and agricultural intensification, and results indicate that farm expansion was done in the study sites, but were not driven by the urgency to produce biofuels. Moreover, very few farmers admitted to doing farm intensification. The overall results of this study can be used to recommend pro-poor and environmentally sustainable policies which take into consideration food security and poverty reduction. Additionally, this research project will also develop a database for the use of models which explicitly account for biofuels and other information for biofuel feedstock.

Partner:

• International Fund for Agricultural Development (IFAD)

Date Completed: December 2011