We employ a multi-region computable general equilibrium model of the world economy to estimate changes in worldwide food insecurity that result from the imposition of the U.S. Renewable Fuels Standard.

With the 2009 milk prices still fresh on everyone’s mind, there has been increased interest in ways to limit milk price volatility. Using SERF, this paper determined some dairies are willing to pay for limited milk price volatility and found a value they are willing to pay using risk premiums.