Bioenergy Policy Articles

This is a document depository for briefing papers developed in collaboration with Texas A&M University. The briefing papers were based in part on research conducted under USDA CSREES grant #2008-34620-19065, titled “Policy Analysis for a National Secure & Sustainable Food, Fiber, Forestry, and Energy Program.” Views expressed herein do not necessarily reflect those of Auburn University, Texas A&M University or USDA.

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Document	Synopsis
Aggregate Economic Impacts of Expanded BioFuel Production	This briefing paper presents estimated aggregate economic effects of expanding production of first generation biofuels to a total of 35 billion gallons by 2025.
Aggregate Economic Implications of Meeting National Cellulosic Biofuel Goals	Estimates of the domestic and international economic impacts potentially resulting from the U.S. cellulosic biofuel mandates reflected in the Renewable Fuel Standard (RFS) are presented in this briefing paper.
AGSIM Econometric-Simulation Model Description	AGSIM is an economic impact simulation model of the United States agricultural economy. The simulation model is based on a large set of econometrically estimated dynamic demand and supply equations for major field crops produced in the United States. The present "BioFuel" version of the model includes supply and utilization of major field crops for biofuel production.
BioEnergy Policy Considerations	An unbalanced drive to make the United States less dependent on foreign oil could easily make the U.S. more dependent on food from foreign sources, hamper conservation efforts and add relatively little to the net energy supply. Integrated food, energy and conservation policy is therefore needed to make wise use of available resources.
Corn Ethanol Aggregate Cost	This briefing paper presents estimates of the aggregate supply curve for corn ethanol over the range of zero to 35 billion gallons or corn ethanol produced annually. The aggregate marginal cost for corn ethanol including taxpayer expense and dead weight loss to the food economy is presented along with the marginal private production cost.
CRP & Erosion Effects of Expanded BioEnergy Production	This Policy Brief compares estimated aggregate economic effects of expanding first generation biofuels—corn ethanol and soy-based biodiesel—from the current level of about 10 billion gallons annually to 30 billion gallons by 2025 with and without CRP land returning to production. Estimated effects on aggregate soil erosion are presented.
Economic and Financial Implications of Supplying a Bioenergy Conversion Facility with Cellulosic Biomass Feedstocks	This research provides an intense comprehensive analysis of the holistic farm production-harvesting-transporting-pre-refinery storage supply chain paradigm which represents the totality of important issues affecting the conversion facility front-gate costs of delivered biomass feedstocks. The analysis dramatically extends beyond the complexity of most studies on costs of supplying biomass by developing a detailed model of activities, constraints, and goals.
Economic Cost of Biodiesel and Corn Ethanol per Net BTU of Energy Produced	It takes energy—fossil fuel in particular—to grow, harvest, transport and convert plant biomass to liquid biofuel. Various scientific studies have examined the net energy contribution of first generation biofuels. This briefing paper extends the scientific studies to examine the aggregate economic cost per net Btu's generated from corn ethanol and from soy based biodiesel. The net economic cost of a fossil fuel substitute is 2- 3 times higher with corn ethanol than with soy-based biodiesel under current technology.
Economic Effects of Not Extending Biofuel Tax Credits	The $1/gallon tax credit for biodiesel production expired in 2009, and the 45 cents/gallon tax credit for corn ethanol production is set to expire at the end of 2010. This briefing paper presents estimates of the aggregate economic effects of not restoring the biofuel tax credits.
Economics of High Energy Sorghum Biomass Production in Texas	This briefing paper presents estimates of unintended consequences to water quality associated with High Energy Sorghum (HES) biomass feedstock production. A hypothetical shift from current pasture to HES production in the Tres- Palacios River watershed of Texas was evaluated by applying the SWAT model (Soil Water Assessment Tool). Changes in Phosphorus (TP), Nitrogen (TN), and sediment runoff were estimated. Results that HES production increases nutrient and sediment loadings. Economic implications of mitigating the water pollution externalities associated with the land use change are presented in this paper.
Energy Balance With Cellulosic Biofuels	The net energy ratio (NER) for two cellulosic feedstocks, and its consequent impact on the cost of biofuel are analyzed in this briefing paper. Switchgrass and high energy sorghum have a NER of 3.96 and 3.32, respectively. Cellulosic ethanol produced from these two feedstock remain at competitive disadvantage compared to conventional fuels due to a much higher cost per gallon.
Irrigation Water Requirements for Corn on the Texas High Plains	Irrigation water expended for production of corn for ethanol on the Texas High Plains averages about 13,000 gallons of water per gross gallon of ethanol produced. The net energy balance of producing irrigated corn for ethanol is negative in this area. Thus irrigated corn for ethanol in the Texas High Plains wastes energy and wastes water from the exhaustible Ogallala acquirer.
Mitigating Externalities Related to Land Use Change for Biomass Production for Energy in the Tres-Palacios River Watershed of Texas	This briefing paper presents estimates of unintended consequences to water quality associated with High Energy Sorghum (HES) biomass feedstock production. A hypothetical shift from current pasture to HES production in the Tres-Palacios River watershed of Texas was evaluated by applying the SWAT model (Soil Water Assessment Tool) (Arnold et. al. 1998) and estimating annual changes in Phosphorus (TP), Nitrogen (TN), and sediment runoff. The results estimated at the watershed outlet indicate that HES production increases nutrient and sediment loadings.
Myth & Reality of Aggregate Economic Effects of Expanded Biofuel Production	This purpose of this Brief is to address two economic myths that we have often heard during policy rhetoric and debate for the past few years. One myth is that expanded first generation biofuel, primarily ethanol from corn, will not impact food prices. The second myth is that dedicated bioenergy crops, such as cellulosic ethanol from switchgrass, will not affect conventionalfoods crops.
Net Energy Balance for Ethanol from Irrigated Corn	High Plains irrigated corn in Texas requires 289,127 BTUs per bushel of corn to produce and convert corn to ethanol, compared to dryland production of corn for ethanol in the Midwest, which requires 209,773 BTUs per bushel of corn. Pumping water substantially increases the energy necessary to produce corn, reducing the energy efficiency of ethanol as a fuel. Thus, irrigated corn produced with natural gas in the High Plains as an ethanol feedstock would result in a negative net energy balance. In every scenario evaluated in this study, net energy balance (without a co-product credit) was negative; however, with the inclusion of a co-product energy credit, the scenarios using electricity to power pumps are positive.
Phosphorus Policy Brief	World sources of phosphorus are being depleted. Political stability in countries with reserves combined with a high level of market concentration are of concern in biofuel policy development.
Review of Aggregate Economic Impacts of the National Bioenergy Policy	Dramatically higher fuel prices and massive petroleum imports from politically-unstable countries contributed to a major national initiative to generate renewable fuels, with an emphasis on ethanol and biodiesel. Often, policies are enacted and implemented with huge taxpayer expenditures, but without due diligence of the unintended consequences. Since the 1970s, there have been many studies and reports discussing effects of alternative proposed biofuel policies as well as analyses of implemented energy policies. This briefing paper provides an overview of some of the issues and implications identified in these prior investigations.

Last Updated: February 19, 2013