Market-mediated environmental impacts of biofuels

• This paper surveys the evidence on biofuels-induced, indirect greenhouse gas emissions stemming from land cover change.
• Market mediated land use response to crop price changes has occurred over the past decade.
• There remains considerable quantitative uncertainty surrounding biofuels induced land use change.

This paper surveys the evidence on market-mediated environmental impacts of biofuels, with special attention to the indirect greenhouse gas emissions stemming from land cover change in the wake of increased demand for biofuel feedstocks. We find clear evidence that market mediated land use response to crop price changes has occurred over the past decade. However, despite all the research that has been done and all the advances made, there remains considerable quantitative uncertainty surrounding biofuels induced land use change. Obtaining precise estimates of these impacts is likely beyond the reach of current models and data.