Subsidies per Unit Greenhouse Gas Displaced

A common claim by biofuels supporters is that ethanol will play an important role in facilitating the transition to a society with a low carbon footprint. To test how efficient existing policies are in getting us there, we examine the subsidy cost per metric ton of CO2-equivalent displaced, and then compare this cost with the value of carbon offsets on the world's two major climate exchanges in Chicago (CCX) and Europe (ECX). The results are shown in Table 4.3. The GHG displacement factors show...

References

Bantz, S., Union of Concerned Scientists (2006, October 2). E-mail communication with Doug Koplow Boddey, R.M. (1993). Green energy from sugar cane. Chemistry and Industry, 17, 355-358 Bullock, D.S. (2007, November). Ethanol policy and ethanol politics. Corn-Based Ethanol in Illinois and the U.S (pp. 147-177) Retrieved December 7, 2007, from University of Illinois (Urbana-Champagne) Department of Agricultural and Consumer Economics Web site Campbell, C., Environmental Working Group (2006,...

Higher Feed and Input Costs for Other Corn Consumers

They do, on the other hand, eat a tremendous amount of products that are directly or indirectly derived from corn. Nearly all pork, beef, dairy, chicken, turkey, and egg products in the U.S. rely strongly on corn as a feedstock. Also, Americans have increasingly come to rely on high fructose corn syrups (HFCS) as a sugar substitute in many foods, beverages, and confections. It is apparent that there is strong demand for corn as a critical input into food...

Evolution of Federal Policies Supporting Liquid Biofuels

Subsidization of ethanol production at the federal level began with the Energy Tax Act of 1978. That Act granted a 4 cents-per-gallon reduction in the federal motor fuels excise tax for gasohol, a blend of 10 ethanol and 90 gasoline, also called 4 A complete list of the GSI's studies can be found at http www.globalsubsidies.org. E10. This rate translates to 40 cents per gallon of pure ethanol at the time, and is equivalent to about 1.00 per gallon in 2007 dollars. The excise tax subsidy rate...

Review of the Economic Rewards and Risks of Ethanol Production

Abstract Ethanol production doubled in a very short period of time in the U.S. due to a combination of natural disasters, political tensions, and much more demand globally from petroleum. Responses to this expansion will span many sectors of society and the economy. As the Midwest gears up to rapidly add new ethanol manufacturing plants, the existing regional economy must accommodate the changes. There are issues for decision makers regarding existing agricultural activities, transportation and...

The Longer Term Prospects for Rural Areas from Biofuels Development

A hallmark of modern agribusiness and modern manufacturing is the persistent substitution of capital for labor. In 1970 the average farm worker in Iowa tended 200 acres of crop land. In 2005 the average Iowa farm worker tended 300 acres of crop land. The prospect of increased biofuels production presupposes an extension if not an acceleration in the uses of mechanical and chemical inputs into agricultural production as farmers shift production to accommodate the corn ethanol industry's rapid...

Measuring and Mismeasuring Biofuels Economic Impacts

It is important to sort out the rhetoric of claimed economic benefits to be expected from biofuels development in the Midwest and the nation because there are tremendous amounts of public money at stake. In the very early stages of this modern boom in ethanol plant construction, politicians, farm commodity groups, and economic developers hailed the emerging industry as the right and proper evolution of modern agricultural production capacities coupled inexorably with technological breakthroughs...

Putting Biofuels Job Change and Growth into Perspective in the Near Term

The interior economy of the U.S., to include its more rural areas, has not grown at anywhere near the pace as the remainder of the U.S. We also know that manufacturing in the interior of the U.S. has been hard-hit over the past decade. Ethanol production from corn is a form of chemical manufacturing. When we look at the overall value of manufacturing to any economy, two factors are paramount the number of jobs created and, of course, the associated earnings that workers convert to household...

Ethanol Production Economic Opportunities and Offsets

In a mature and relatively stable commodity production and distribution system, large changes in one segment of that system have consequences for other aspects of agriculture, non-agriculture industries, the public, and households. Initially it is important to note that the placement of a modern biofuels plant in a rural economy will result in an expansion of net regional industrial production. In the short run there is a positive economic impact to be expected. The rapid run-up in ethanol...

Proposed Cellulosic Ethanol Refineries

Now I present at face value the stated energy efficiencies9 of the six proposed10 cellulosic ethanol plants awarded 385 million USD by the US Department of Energy. Figure 2.14 ranks the rather imaginary claims of 5 out of 6 award recipients. For calibration, after 87 years of development and optimization, the actual energy efficiency of Sasol's Fischer-Tropsch coal-to-liquid fuels plants is about 42 (Steynberg and Nel, 2004). The average energy efficiency of the highly optimized corn ethanol...

About our Authors

Alves graduated in Agronomy from UFRRJ (Federal University of Rio de Janeiro) in 1987. He concluded the Master's Degree (1992) and PhD (1996) in Agronomy at the same University, specializing in techniques for the study of the dynamics of N in the soil and for the quantification of biological N2 fixation in legume and non-legume species. He is a researcher at the Brazilian Corporation of Agricultural Research (Embrapa) and a teacher-advisor in the post-graduation program in Agronomy...

What Is The Role Of Solarenergy In Mitigating Pressure Forest

America's Solar Energy Potential. Retrieved July 9, 2007, from Australian Government. 2007 . Solar Thermal. Retrieved July 9, 2007, from http www AWEA American Wind Energy Association. 2000a . Wind energy the fuel of the future is ready today. Retrieved October 20, 2002, from AWEA American Wind Energy Association. 2000b . Wind energy and climate change. Retrieved July 28, 2006, from Bagla, P. 2003 . Dream rice to curb malnutrition. Indian Express. Retrieved July 28,...

Hydroelectric Power

Hydropower contributes significantly to world energy, providing 6 of the supply Table 1.1 . In the United States, hydroelectric plants produce approximately 3 or 3.4 quads of total U.S. energy 340 billion kWh 1 kWh 860 kilocalories kcal 3,440 BT 3.6 megajoules , or 11 of the nation's electricity, each year at a cost of 0.02 per kWh Table 1.2 USCB 2007 . Development and rehabilitation of existing dams in the United States could produce an additional 5 quads per year Table 1.3 . Hydroelectric...