Review of Environmental, Economic and Policy Aspects of Biofuels

The world is witnessing a sudden growth in production of biofuels, especially those suited for replacing oil like ethanol and biodiesel. This paper synthesizes what the environmental, economic, and policy literature predicts about the possible effects of these types of biofuels. Another motivation is to identify gaps in understanding and recommend areas for future work. The analysis finds three key conclusions. First, the current generation of biofuels, which is derived from food crops, is intensive in land, water, energy, and chemical inputs. Second, the environmental literature is dominated by a discussion of net carbon offset and net energy gain, while indicators relating to impact on human health, soil quality, biodiversity, water depletion, etc., have received much less attention. Third, there is a fast expanding economic and policy literature that analyzes the various effects of biofuels from both micro and macro perspectives, but there are several gaps. A bewildering array of policies - including energy, transportation, agricultural, trade, and environmental policies - is influencing the evolution of biofuels. But the policies and the level of subsidies do not reflect the marginal impact on welfare or the environment. In summary, all biofuels are not created equal. They exhibit considerable spatial and temporal heterogeneity in production. The impact of biofuels will also be heterogeneous, creating winners and losers. The findings of the paper suggest the importance of the role biomass plays in rural areas of developing countries. Furthermore, the use of biomass for producing fuel for cars can affect access to energy and fodder and not just access to food.

Bibliographic Details

Main Authors:	Rajagopal, Deepak, Zilberman, David
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	World Bank, Washington, DC 2007-09
Subjects:	ABSENCE OF OXYGEN, ACCESS TO ENERGY, AGRICULTURAL COMMODITIES, AGRICULTURAL RESIDUES, AGRICULTURAL WASTES, AIR POLLUTANTS, ALFALFA, ALTERNATIVE ENERGY, ALTERNATIVE FUEL, ANAEROBIC DIGESTION, ANHYDROUS ETHANOL, ANIMAL DUNG, ANIMAL POWER, ANIMAL WASTE, ANIMAL WASTES, APPROACH, ATMOSPHERIC PRESSURE, AVAILABILITY, BARRELS OF OIL, BIOGAS, BIOMASS, BIOMASS ENERGY, BIOMASS ENERGY USE, BIOMASS FEEDSTOCK, BIOMASS GASIFICATION, BIOMASS PRODUCTION, BOILERS, CARBON DIOXIDE, CARBON DIOXIDE EMISSIONS, CARBON EMISSIONS, CARBON INTENSITY, CARBON MONOXIDE, CARBON NEUTRAL, CARBON OFFSET, CARBON SEQUESTRATION, CELLULOSE, CELLULOSIC BIOMASS, CELLULOSIC CONVERSION, CELLULOSIC ETHANOL, CELLULOSIC FEEDSTOCK, CHEMICAL CONVERSION, CHEMICAL INDUSTRIES, CHEMICAL PROCESSES, CHEMICAL PROPERTIES, CLEANER ENERGY, CLIMATE CHANGE, COAL, COGENERATION, COMBUSTION, COMBUSTION CHARACTERISTICS, COMBUSTION OF BIOMASS, COMBUSTION OF LIGNIN, CONSUMPTION OF PETROLEUM, CONVERSION EFFICIENCY, CONVERSION FACILITY, CONVERSION OF BIOMASS, CONVERSION OF BIOMASS TO FUELS, CONVERSION OF CELLULOSE TO ETHANOL, CONVERSION OF WOOD, CONVERSION OF WOOD TO ETHANOL, CONVERSION PROCESS, COOK STOVES, CORN ETHANOL, CORN GLUTEN, CORN GLUTEN MEAL, CORN GRAIN, CORN OIL, CORN PRICES, CORN STOVER, CRUDE OIL, CRUDE OIL PRICE, CRUDE OIL USE, DEMAND FOR GASOLINE, DIESEL, DIESEL ENGINE, DIESEL ENGINES, DIESEL GENERATORS, DIESEL USE, DISTRIBUTION OF ELECTRICITY, ELECTRIC GRID, ELECTRIC VEHICLES, ELECTRICITY, ELECTRICITY FROM BIOMASS, ELECTRICITY GENERATION, ELECTRICITY PRODUCTION, ELECTRICITY SUPPLY, EMISSION, EMISSIONS, ENERGY CONSERVATION, ENERGY CONSUMPTION, ENERGY CONTENT OF ETHANOL, ENERGY CROP PRODUCTION, ENERGY CROPS, ENERGY INPUT, ENERGY NEEDS, ENERGY PLANTATIONS, ENERGY PRICES, ENERGY PRODUCTION, ENERGY REQUIREMENTS, ENERGY SOURCE, ENERGY SOURCES, ENVIRONMENTAL IMPACTS, ENVIRONMENTAL PERFORMANCE, ENZYMATIC HYDROLYSIS, ETHANOL, ETHANOL FROM CORN, ETHANOL FUEL, ETHANOL PLANT, ETHANOL PRICES, ETHANOL PRODUCTION, ETHANOL PRODUCTION FROM CORN, FEEDSTOCK, FOSSIL, FOSSIL ENERGY, FOSSIL FUEL, FOSSIL FUEL USE, FOSSIL FUELS, FUEL, FUEL CELL, FUEL CELL VEHICLES, FUEL CELLS, FUEL CONSUMPTION, FUEL DEMAND, FUEL OIL, FUEL PRODUCTION, FUEL USE, GAS TURBINES, GASIFICATION OF BIOMASS, GASIFICATION PROCESSES, GASOLINE, GASOLINE CONSUMPTION, GASOLINE DEMAND, GASOLINE PRICE, GASOLINE USE, GENERATION, GENERATION OF ELECTRICITY, GLOBAL ENERGY SUPPLY, GREENHOUSE GAS, GRID ELECTRICITY, HEAT, HEMICELLULOSE, HIGH LIPID CONTENT, HYDROGEN, HYDROGEN SULFIDE, HYDROPOWER, IMPROVING ENERGY EFFICIENCY, IMPURITIES, INTERNAL COMBUSTION, KEROSENE, KILOWATT HOUR, LIGNIN, LIQUID FUELS, LIQUID HYDROCARBONS, MANURE, METHANE, MODERN FUELS, NATURAL GAS, NATURAL GAS FEEDSTOCK, NATURAL GAS PRICES, NITROGEN, NONRENEWABLE ENERGY, NUCLEAR ENERGY, OIL, OIL EQUIVALENT, OIL IMPORTS, OIL PRICES, OIL SUPPLY, OIL USE, OILS, OPEN BURNING, OPEN-FIELD BURNING, ORGANIC CARBON, ORGANIC MATERIAL, OXYGEN, PARTICULATE, PARTICULATE MATTER, PARTICULATES, PETROLEUM, PETROLEUM CONSUMPTION, PETROLEUM DIESEL, PETROLEUM GAS, PHOSPHORUS, PHOTOSYNTHESIS, POLLUTANTS, POLLUTION, POTASSIUM, POWER PLANT, POWER PLANTS, PRICE OF OIL, PRIMARY ENERGY, PRIMARY ENERGY SUPPLY, PRIMARY SOURCE OF ENERGY, PROCESS HEAT, PRODUCTION OF ELECTRICITY, PRODUCTION OF ETHANOL, PRODUCTION OF FERTILIZERS, PYROLYSIS, QUANTITY OF FUEL, RAW BIOMASS, RAW MATERIAL, RENEWABLE ENERGY, RENEWABLE ENERGY USE, RENEWABLE SOURCE, RENEWABLE SOURCES, RURAL ELECTRIFICATION, RURAL ENERGY, SOLAR ENERGY, SOURCE OF ETHANOL, SPACE HEATING, SUGARCANE, SUGARCANE ETHANOL, SUGARCANE MOLASSES, SUPPLY CURVE, SUPPLY CURVE FOR BIOMASS, SUPPLY OF BIOMASS, SURPLUS BAGASSE, SYNTHESIS GAS, THERMAL UNIT, TIDAL ENERGY, TRADITIONAL BIOMASS, TRANSPORTATION FUEL, UTILIZATION OF BIOMASS, VEHICLES, WIND, WOOD CHIPS,
Online Access:	http://documents.worldbank.org/curated/en/2007/09/8230679/review-environmental-economic-policy-aspects-biofuels http://hdl.handle.net/10986/7337
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