Biofuels
are the hot topic these days. They
have generated excitement for their potential to reduce dependence on fossil
fuels, stimulate rural development in the U.S. and open new markets for
developing countries. Critics have argued that biofuels production may be
energy-inefficient, harms the environment, and will increase food insecurity in
the developing world. Here are some biofuels basics, to help you wade through
all the conflicting prognoses.
What are
biofuels?
Biofuels
are carbon fuels derived from organic matter that is available on a renewable
basis. Biofuels can be liquids, gases, or solids, and can come from
agricultural crops, trees, wood and wood wastes and residues, grasses, or
animal wastes. The
major biofuels used today are ethanol, a gasoline alternative, and biodiesel, a
diesel alternative.
Are they
good for the environment?
That depends on what your
environmental priorities are, and how biofuels are produced. Biofuels emit
fewer greenhouse gases than traditional fuels, and plants grown to produce
biofuels trap CO2 from the atmosphere.
Thus, biofuels can help slow or reverse global warming.
However, biofuels production has
led to deforestation in Brazil, Indonesia and Malaysia, as
more land is devoted to growing energy crops. Ethanol production also strains
water resources, and fertilizer runoff can also cause problems in surrounding
communities. Biofuels seem to have the potential to ameliorate climate change
and reduce fossil fuel use, but environmental safeguards must be in place to
ensure that we do not destroy other natural resources in the process.
Food vs. Fuel?
Biofuels skeptics argue that
devoting more farmland to biofuels will decrease the amount of food available
and increase food prices. Corn prices, for example, have increased dramatically
in the world market as a result of corn-based ethanol production in the U.S. Many poor
people in Mexico
are now struggling to afford tortillas, a staple of their diet, because prices
have doubled in response to corn costs.
On the flip side, a growing demand
for biofuels could open new economic opportunities for poor nations. The
tropical climates of many developing countries are better-suited for producing
biofuels than the cooler climates of many developed countries, giving the
developing countries a comparative advantage in this new market. Furthermore,
experiments have proven that trees, shrubs, and grassland plants can produce
biofuels on degraded soils. (Read more at: http://www.cedarcreek.umn.edu/.) Perhaps
biofuels production need not compete with food production; studies like these
show promising results.
What’s happening now with biofuels?
The U.S.has set a target of 7.5
billion gallons of biofuels in 2012, approximately twice the amount produced domestically
in 2006. Both production and imports of biofuels will increase dramatically.
The EU recently set a target for 2012 for biofuels to comprise 10% of their
fuel market.
Many developing countries are
responding to these potential market opportunities. Malaysia,
Thailand, and Indonesiaare producing more palm oil, the Philippines is producing more coconut oil, and India is
planting more jatropha (an evergreen plant), all in order to increase biofuel
production. Developing countries, however, do not have the same government
support and infrastructures in place that developed countries enjoy, and many
developed countries maintain trade barriers to protect their own biofuel
industries.
Stay Tuned…
As Congress
re-authorizes the Farm Bill this year, biofuels are likely to receive more
government support. Many community, however, are protesting proposed ethanol
plants because of the environmental repercussions.
Currently,
the World Trade Organization treats most biofuels, with the exception of biodiesel,
as agricultural or chemical products. As international trade increases, the WTO
may re-classify biofuels as environmental or industrial goods, which would
impact the amount of tariffs that governments could impose on biofuels imports.
Production,
consumption, and international trade in biofuels are all increasing. The debate
will likely intensify in the coming years as biofuels impact agricultural
industries, rural development, and fuel use. The long-term effects are still
uncertain, but the discussion will undoubtedly continue.
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