From: IISD Reporting Services (Linkages) - 05/08/2008
This report by the Organization of Economic Cooperation and Development (OECD) indicates that biofuel production and use in OECD countries is highly dependent on public funding and government support measures such as tax concessions, direct financial support, minimum blending requirements and import tariffs. It also shows that emission savings from current biofuels are limited, while suggesting that related policies will lead to increases in food prices, which are estimated to amount to five percent for wheat, seven percent for maize and 19 percent for vegetable oils. The report recommends, among other measures, that governments focus on: policies to encourage lower energy consumption; redirecting support towards more efficient biofuels; and research and development for second generation biofuels that do not require commodity feedstocks.
The report can be acessed from the following link - http://www.oecd.org/dataoecd/19/62/41007840.pdf