Biofuels are promoted in the United States through aggressive legislation, as one part of an overall strategy to lessen dependence on imported energy as well as to reduce the emissions of greenhouse gases (Office of the Biomass Program and Energy Efficiency and Renewable Energy, 2008). For example, the Energy Independence and Security Act of 2007 (EISA) mandates 36 billion gallons of renewable liquid transportation fuel in the U.S. marketplace by the year 2022 (U.S. Government, 2007). Meeting such large volumetric targets has prompted an unprecedented increase in funding for biofuels research, much of it focused on producing ethanol and other fuel types from cellulosic feedstocks as well as additional biomass sources (such as oil seeds and algae feedstock). In order to help propel the biofuels industry, the U.S. government has enacted a variety of incentive programs (including subsidies, fixed capital investment grants, loan guarantees, vehicle choice credits, and aggressive corporate average fuel economy standards) - the short- and long-term ramifications of which are not well understood. Efforts to better understand the impacts of incentive strategies can help policy makers to develop a policy suite which will foster industry development while reducing the financial risk associated with government support of the nascent biofuels industry.
展开▼
