Will biofuels end OPEC’s power and agricultural protectionism?

Published: November 6 2007 16:32 | Last updated: November 6 2007 16:32

Biofuels are set to transform the global economy, according to Harvard University economist Ricardo Hausmann, leading to the demise of the price-setting power of OPEC and the end of agricultural protectionism.

He argues that technology is bound to deliver a biofuel that will be competitive with fossil energy at something like current prices. The consequences of this will be that the large potential supply of biofuels will cap the price of oil because its supply is much more elastic.

Professor Hausmann also argues that the large-scale biofuel production will cause increases in the price of agricultural land and of food that will relieve governments from the current political pressure to protect the agricultural sector. This, he says, will boost sustainable development in poorer nations.

Can these predictions become reality? Which biofuels will become most widely used? What do such scenarios mean for carbon emissions and energy security?

Professor Hausmann will answer your questions on Thursday 15 November 2007. Post a question now to ask@ft.com or use the online submissions form below.

http://www.ft.com/cms/s/2/2fe3bea8-8c84-11dc-b887-0000779fd2ac.html