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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.

The US is currently the world's largest ethanol producer. An increasing percentage is used as transportation fuel, but debates continue on its costs competitiveness and energy balance. In this study, technological development of ethanol production and resulting cost reductions are investigated by using the experience curve approach, scrutinizing costs of dry grind ethanol production over the timeframe 1980–2005. Cost reductions are differentiated between feedstock (corn) production and industrial (ethanol) processing.

A dry-grind ethanol from corn process analysis is performed. After defining a complete model of the process, a pinch technology analysis is carried out to optimise energy and water demands. The so-defined base case is then discussed in terms of production costs and process profitability. A detailed sensitivity analysis on the most important process and financial variables is carried out. The possibility to adopt different alternatives for heat and power generation combined to the process is evaluated.

Production costs of bio-ethanol from sugarcane in Brazil have declined continuously over the last three decades. The aims of this study are to determine underlying reasons behind these cost reductions, and to assess whether the experience curve concept can be used to describe the development of feedstock costs and industrial production costs. The analysis was performed using average national costs data, a number of prices (as a proxy for production costs) and data on annual Brazilian production volumes.

The important key technologies required for the successful biological conversion of lignocellulosic biomass to ethanol have been extensively reviewed. The biological process of ethanol fuel production utilizing lignocellulose as substrate requires: (1) delignification to liberate cellulose and hemicellulose from their complex with lignin, (2) depolymerization of the carbohydrate polymers (cellulose and hemicellulose) to produce free sugars, and (3) fermentation of mixed hexose and pentose sugars to produce ethanol.