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This report provides a status of the markets and technology development involved in growing a domestic bioenergy economy as it existed at the end of calendar year 2013. It compiles and integrates information to provide a snapshot of the current state and historical trends influencing the development of bioenergy markets. This information is intended for policy-makers as well as technology developers and investors tracking bioenergy developments. It also highlights some of the key energy and regulatory drivers of bioenergy markets.

Author(s):
U.S. Department of Energy
Funded from the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Bioenergy Technologies Office.

A working paper review of current approaches to accounting for indirect land-use changes in green house gas balances of biofuels. This report reviews the current effort made worldwide to address this issue. A
description of land-use concepts is first provided (Section 2) followed by a classification of
ILUC sources (Section 3). Then, a discussion on the implications of including ILUC
emissions in the GHG balance of biofuel pathways (Section 4) and a review of methodologies
being developed to quantify indirect land-use change (Section 5) are presented. Section 6

Author(s):
Gnansounou,Edgard

Biofuels from land-rich tropical countries may help displace foreign petroleum imports for many industrialized nations, providing a possible solution to the twin challenges of energy security and climate change. But concern is mounting that crop-based biofuels will increase net greenhouse gas emissions if feedstocks are produced by expanding agricultural lands. Here we quantify the ?carbon payback time? for a range of biofuel crop expansion pathways in the tropics.

Author(s):
Gibbs, H.K.

In this paper we investigate the potential production and implications of a global biofuels industry. We develop alternative approaches to the introduction of land as an economic factor input, in value and physical terms, into a computable general equilibrium framework. Both approach allows us to parameterize biomass production in a manner consistent with agro-engineering information on yields and a ?second generation? cellulosic biomass conversion technology.

Author(s):
Gurgel, Angelo

The preceding two chapters of this volume have discussed physical and economic data bases for global agriculture and forestry, respectively. These form the foundation for the integrated, global land use data base discussed in this chapter. However, in order to utilize these data for global CGE analysis, it is first necessary to integrate them into a global, general equilibrium data base. This integration is the subject of the present chapter

Author(s):
Huey-Lin Lee

This paper presents a range of future, spatially explicit, land use change scenarios for the EU15, Norway and Switzerland based on an interpretation of the global storylines of the Intergovernmental Panel on Climate Change (IPCC) that are presented in the special report on emissions scenarios (SRES). The methodology is based on a qualitative interpretation of the SRES storylines for the European region, an estimation of the aggregate totals of land use change using various land use change models and the allocation of these aggregate quantities in space using spatially explicit rules.

Author(s):
Rounsevell M.D.A.

Human actions are altering the terrestrial environment at unprecedented rates, magnitudes, and spatial scales. Landcover change stemming from human land uses represents a major source and a major element of global environmental change. Not only are the global-level data on landuse and land-cover change relatively poor, but we need a much better understanding of the underlying driving forces for these changes. Many forces have been proposed as significant, but single-factor explanations of land transformation have proved to be inadequate.

Author(s):
Turner,B.L.

We present a system dynamics global LUC model intended to examine LUC attributed to biofuel production. The model has major global land system stocks and flows and can be exercised under different food and biofuel demand assumptions. This model provides insights into the drivers and dynamic interactions of LUC, population, dietary choices, and biofuel policy rather than a precise number generator.

The IPCC SRREN report addresses information needs of policymakers, the private sector and civil society on the potential of renewable energy sources for the mitigation of climate change, providing a comprehensive assessment of renewable energy technologies and related policy and financial instruments. The IPCC report was a multinational collaboration and synthesis of peer reviewed information: Reviewed, analyzed, coordinated, and integrated current high quality information.

Ethanol use in the U.S. rose sharply in recent years due to public policy and a spike in petroleum prices, and remains high. Public support for ethanol includes mandated minimum levels of use nationwide. However, rather little is known about consumer demand for ethanol and much less about demand by type of blend and ethanol source. We used trial survey data and conjoint analysis to overcome the lack of historical data on consumers’ preferences for ethanol blend fuels.

Author(s):
Aguilar, Francisco X.

This paper examines the possibilities of breaking into the cellulosic ethanol market in south Louisiana via strategic feedstock choices and the leveraging of the area’s competitive advantages. A small plant strategy is devised whereby the first-mover problem might be solved, and several scenarios are tested using Net Present Value analysis.

Author(s):
Darby, Paul

The Energy Independence and Security Act (EISA) of 2007 established specific targets for the production of biofuel in the United States. Until advanced technologies become commercially viable, meeting these targets will increase demand for traditional agricultural commodities used to produce ethanol, resulting in land-use, production, and price changes throughout the farm sector. This report summarizes the estimated effects of meeting the EISA targets for 2015 on regional agricultural production and the environment. Meeting EISA targets for ethanol production is estimated to expand U.S.

Author(s):
Malcolm, Scott A.

This paper introduces a spatial bioeconomic model for study of potential cellulosic biomass supply at regional scale. By modeling the profitability of alternative crop production practices, it captures the opportunity cost of replacing current crops by cellulosic biomass crops. The model draws upon biophysical crop input-output coefficients, price and cost data, and spatial transportation costs in the context of profit maximization theory. Yields are simulated using temperature, precipitation and soil quality data with various commercial crops and potential new cellulosic biomass crops.

Author(s):
Egbendewe-Mondzozo, Aklesso

Events external to agriculture have set in motion the conditions for structural change in the marketing of corn in the U.S. These included a rapid increase in the price of crude oil from $40 per barrel to over $100 caused by hurricanes, geopolitical events, an increased global demand for energy from countries like China and India, and in December 2007, the U.S. raising the renewable fuel standards. The results of this research show that there could be significant changes in the historical utilization and marketing of corn in the U.S.

Author(s):
Conley, Dennis M.

In this study we use data envelopment analysis to decompose the overall economic efficiency of a sample of ethanol plants into three subcomponents: technical efficiency, allocative efficiency and a new component we call marketing efficiency. The relative importance of these sources of efficiency is of particular interest given the recent history of bankruptcies, plant closings and ownership change in the industry. Results reveal that observed production units are very efficient from a technical point of view as suggested by a standard deviation of 1% in technical efficiency.

Author(s):
Sesmero, Juan P.

Energy security and environmental concerns about global climate change have lead to recent growth in the use of bio-fuels in the U.S. Brazil currently exports a substantial share of its sugarcane based ethanol to the U.S. to support the growing demand for bio-fuels. However, U.S. policies that exogenously affect the bio-fuel sector confound the understanding of the multi-market impacts of a growing bio-fuel demand. Moreover, the various forms of government intervention in the bio-fuel economy leave researchers with unclear conclusions about the prospects for bio-fuels.

Author(s):
Bowser, William

The purpose of this research was to determine whether indirect land use occurs and if so to what extent. Indirect land use is a change from non-cropland to cropland (e.g. deforestation) that may occur in response to increasing scarcity of cropland. As farmers worldwide respond to higher crop prices in order to maintain the global food supply and demand balance, pristine lands are cleared and converted to new cropland to replace the crops for feed and food that were diverted elsewhere to biofuels production.

Author(s):
Sobowale, Folakemi

The Federal Trade Commision performs a market concentration analysis of the ethanol production industry to determine whether there is sufficient competition among industry participants to avoid price-setting and other anticompetitive behaviour.The FTC must report its findings to Congress and to the
Administrator of the Environmental Protection Agency. This link presents the FTC’s
concentration analysis of ethanol production up to year 2009.

One of the major objectives of the current expansion in bioenergy cropping is to reduce global greenhouse gas emissions for environmental benefit. The cultivation of bioenergy and biofuel crops also affects biodiversity more directly, both positively and negatively.

Author(s):
Les G. Firbank