The U.S. Biofuel Policy: Review of Economic and Environmental Implications

Abstract

A major national initiative to generate renewable fuels from plant matter has taken shape in the U.S., primarily to reduce dependency on foreign oil and achieve reduction in greenhouse gases. However, the biofuel policies in the U.S. ignored for the most part, the potential synergies between food and biofuel production. As a result, their production has produced negative impacts on food security, natural resources, and climate. This paper reviews some of the recent literature identifying the economic and environmental consequences of the U.S. renewable fuel policy. The aim of this review is to understand the key regional threats to water security in the context of projected food and energy demand growth. Failure to account for unintended consequences in future policy development can jeopardize achieving the energy, agricultural, and environmental policy goals of the biofuels program.