Abstract
AbstractThis perspective addresses the rural development implications of developing a cellulosic biofuels industry to meet current mandates. While biofuels development has been generally assumed to be positive for rural economies, the potential economic contribution of biofuels has not been quantifi ed. We compare the economic contribution (economic impact) of a biomass‐based ethanol plant with that of a corn‐based facility. The cellulosic biorefi nery has a much greater contribution because the feedstock payments represent new income for farmers and those involved in the supply process, whereas corn has alternative markets. We then explore the implications of developing a cellulosic‐based industry at a scale to meet the 16‐billion‐gallon cellulosic biofuel mandate of the Energy Independence and Security Act of 2007. The economic effects for rural areas with high feedstock potential could be substantial. © 2008 Society of Chemical Industry and John Wiley & Sons, Ltd
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