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Water consumption and water quality continue to be key factors affecting environmental sustainability in biofuel production. This review covers the findings from biofuel water analyses published over the past 2 years to underscore the progress made, and to highlight advancements in understanding the interactions among increased production and water demand, water resource availability, and potential changes in water quality. We focus on two key areas: water footprint assessment and watershed modeling.

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.

The United States shares with many other countries the goal of the United Nations Framework Convention on Climate Change “to achieve . . . stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.”1 The critical role of new technologies in achieving this goal is underscored by the fact that most anthropogenic greenhouse gases (GHGs) emitted over the next century will come from equipment and infrastructure that has not yet been built.