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Abstract: China is now the third largest bioethanol producer in the world after the United State and Brazil. The overall goals of this paper are to provide an overview of China’s current bioethanol program, its future trend, and the likely impacts on its agricultural economy in the future. The analysis shows that China has developed an ambitious long-run biofuel program with a series of financial and institutional supports. While there are several potential feedstock crops available for bioethanol production, lack of land for feedstock production is one of major constraints in China’s bioethanol expansion. The results show that although China’s bioethanol expansion will have little impacts on overall agricultural prices in international markets, it will have significant impacts on the prices, productions, and trade of those energy crops being used for bioethanol production in China. [Copyright &y& Elsevier]

Abstract: The last decade has seen a surging demand for biofuels in the wake of increasing oil prices and rising environmental concerns. The most common biofuel is bio-ethanol accounting for more than 90% of total biofuel usage. It is increasingly produced from sugar cane making cane a strategic crop for biofuels. Given the growing demand for “green” fuels, bio-ethanol production has been supported by energy policies in the past decade, which have consequently been accused of contributing to the global trend of rising food prices and thus jeopardising food security. However, while biofuel policies are an important driver, prices as much as food security will ultimately be determined by supply constraints of strategic crops. This paper hence investigates drivers of and constraints to sugar cane production in China and India and shows that supply side constraints vary significantly in the two countries. China and India both face serious limitations with regard to suitable available land for the further expansion of sugar cane production. Equally they are both faced with challenges to increasing yield output per hectare, albeit different ones. With regard to productivity, China achieved 2.7% annual yield growth since 1997, while India has seen yield decreases of −0.1%p.a. over the same period. The authors conclude that cane used as a feedstock to meet the rising energy demand will come at the expense of converting fertile land for non-food purposes. [Copyright &y& Elsevier]