Prices matter: Analysis of food and energy competition relative to land resources in the European Union

We advance a conceptual framework to put the debate about food versus fuel in the European Union into perspective. We show that many of the problems identified for the food and bioenergy production in the European Union have been priced via several rules and regulations, including water use, fertilizer and pesticide use, and protection of habitats. Therefore, products produced at lower costs (including environmental costs) require fewer resources and can be considered more environmentally friendly. Our results suggest that, from a resource efficiency point of view, the European Union should consider importing more biofuels and biofuel feedstocks from other countries.