Document Type

Closed Project

Publication Date

Spring 2011


Tugrul Daim

Course Title

Energy Technology Innovation

Course Number

ETM 510


Biofuels production has had several effects on the agriculture, land use, rural economics and also in environmental aspects. This is because in one way or another, some agricultural products have had their prize increased due to their high demand in the industrial sector, domestic sector, and the energy industry. For instance, the prize of corn has gone high because there has been a high demand for corn to be used in ethanol production. On the other hand, this situation has provided economic incentives for some producers to devote additional land to corn production (Gaffigan 2009). This means that there are potential effects of biofuels production in the future. The potential future effects of expanded biofuels production in the U.S also include production of new energy crops for advanced biofuels. It must be understood that these new crops may affect the production of other crops and livestock on agricultural land. The increasing corn ethanol production has had mixed effects on land use, crop selection and livestock production. For instance, in 2007, increased corn prizes led farmers to devote more land for corn and less for soybeans. It is therefore necessary to formulate policies that will harmonize the production of energy and food in the same land. Production of biofuels must be encouraged in a controlled manner in order to reduce overdependence on fossil fuel and at the same time make sure that the acreage of land devoted for agricultural produce is not reduced to the advantage of biofuels production.


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