The economic and environmental sustainability of biofuel production
This paper analyses some of the determinants of biofuel economy in terms of relations with the fossil fuels markets and the agricultural markets. In particular, on the basis of the scientific literature the impact of fossil fuel prices on the agricultural markets is analyzed together with substitutability between food/fodder and biofuel production. The study then goes on to attempt evaluation of the environmental sustainability of biofuels on the basis of the energy balance, greenhouse gas reduction and other environmental effects. The paper concludes with some benefits and costs considerations on biofuel and the implications for policy-making.
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