Biofuels in the energy transition: macroeconomic impacts and development prospects.

Summary After having shown the existence of an inflationary impact of first generation biofuels on agricultural prices via a strengthening of the link between agricultural and oil prices, we highlight the absence of a real positive effect of their expansion on emerging and developing economies. Moreover, the rise in agricultural prices has forced some countries importing these agricultural products to implement policies to protect their domestic markets. These results prove that it is imperative to develop biofuel production that does not require food feedstocks. However, we highlight the preference of the French population for these second generation biofuels, especially for a production from agricultural residues. Finally, we establish - by taking the example of an American market - that the implementation of biofuel derivative markets in Europe could allow manufacturers to effectively protect themselves against price volatility.