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The Biomass Program is one of the nine technology development programs within the Office of Energy Efficiency and Renewable Energy (EERE) at the U.S. Department of Energy (DOE). This 2011 Multi-Year Program Plan (MYPP) sets forth the goals and structure of the Biomass Program. It identifies the research, development, demonstration, and deployment (RDD&D) activities the Program will focus on over the next five years, and outlines why these activities are important to meeting the energy and sustainability challenges facing the nation.

Biodiesel is a renewable diesel fuel substitute that can be made by chemically combining any natural oil or fat with an alcohol such as methanol or ethanol. Methanol has been the most commonly used alcohol in the commercial production of biodiesel. In Europe, biodiesel is widely available in both its neat form (100% biodiesel, also known as B100) and in blends with petroleum diesel. Most European biodiesel is made from rapeseed oil (a cousin of canola oil).

Biofuels are presented in rich countries as a solution to two crises: the climate crisis and the oil crisis. But they may not be a solution to either, and instead are contributing to a third: the current food crisis.

PEATSim (Partial Equilibrium Agricultural Trade Simulation) is a dynamic, partial equilibrium, mathematical-based model that enables users to reach analytical solutions to problems, given a set of parameters, data, and initial
conditions. This theoretical tool developed by ERS incorporates a wide range of domestic and border policies that enables it to estimate the market and trade effects of policy changes on agricultural markets. PEATSim captures

Agricultural markets often feature significant transport costs and spatially distributed production and processing which causes spatial imperfect competition. Spatial economics considers the firms’ decisions regarding location and spatial price strategy separately, usually on the demand side, and under restrictive assumptions. Therefore, alternative approaches are needed to explain, e.g., the location of new ethanol plants in the U.S. at peripheral as well as at central locations and the observation of different spatial price strategies in the market.

In the last decade biofuel production has been driven by governmental policies. This article reviews the national strategy plans of the world’s leading producers. Particular attention is dedicated to blending targets, support schemes and feedstock use. Individual country profiles are grouped by continent and include North America (Canada and the US), South America (Argentina, Brazil, and Colombia), Europe (the European Union, France, and Germany), Asia (China, India, Indonesia, Malaysia, and Thailand) and Australia.

Enhanced environmental quality, fuel security, and economic development along with reduced prices of ethanol-gasoline blends are often used as justifications for the U.S. federal excise tax exemption on ethanol fuels. However, the possible effect of increased overall consumption of fuel in response to lower total price, mitigating the environmental and fuel security benefits, are generally not considered. Taking this price response into account, the optimal U.S. ethanol subsidy is derived.