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Biofuels and Food Security in the US, the EU and Other Countries

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Abstract

Clean Air Act Amendments (CAAA90), the phasing out of MTBE, establishing the Renewable Fuel Standard (RFS) and other factors have boosted US bioethanol markets, which are the world’s largest. US bioethanol is produced mainly from corn—more than 40 % of corn consumption has been used for the production of bioethanol since 2009/2010. The US is the largest corn producer and exporter in the world. Accordingly, increasing bioethanol consumption can have an impact not only on domestic corn markets but also on world corn markets. Soybean oil is used for biodiesel production, and more than 20 % of soybean oil consumption is used for biodiesel production in the US. Increasing soybean oil consumption for biodiesel could impact not only the domestic market but also world soybean products markets. Reducing GHG emissions is the main incentive for promoting the biofuel program in the EU, which is the world’s largest biodiesel producer. More than 25 % of world rapeseed oil consumption is used for biodiesel production in the EU. Accordingly, EU biodiesel production can have an impact on global vegetable oil markets. Other Latin American countries (Argentina, Colombia, Peru), Canada and African countries are producing biofuels. These Latin American countries have set up a biofuel mandate. However, the blending mandates have been challenging. Canada will not become a major player in the global bioethanol markets in the near future.

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Notes

  1. 1.

    Reformulated gasoline (RFG) is gasoline blended to burn more clearly than conventional gasoline and to reduce smog-forming and toxic pollutants in the air.

  2. 2.

    0.04 USD/gallon was applied to blender in the case of E10 (10 % blend bioethanol to gasoline) from 1978 to 1989, 0.54 USD/gallon was applied to blender in the case of E10 from 1990 to 2007 and 0.45 USD/gallon was applied to blender in the case of E10 from 2008 to 2011.

  3. 3.

    A cellulosic biofuel producer that is registered with the IPS may be eligible for a tax incentive of up to 1.01 USD per gallon of cellulosic biofuel (RFA).

  4. 4.

    The marketing year begins from September 1 every year.

  5. 5.

    The term “distillers’ grains” refers to co-products generated by dry-mill ethanol plants, including distillers’ wet grains (DWG), distillers’ dried grains (DDG), distillers’ wet grains with solubles (DWGS), distillers’ dried grains with soluble (DDGS), and condensed distillers’ solubles (CDS). Unless otherwise specified for the remainder of this report, the term distillers’ grains will mean distillers’ dried grains with solubles (DDGS) [6].

  6. 6.

    The average of estimation was derived from Hoffman and Baker [6], estimated from Dhuyvetter et al. [8], Berger and Good [9], Dooley [10] and Fox [11].

  7. 7.

    High-level gasoline blends containing 51–83 % of bioethanol, depending on geography and season [14].

  8. 8.

    The US FFVs are a different type from Brazilian FFVs.

  9. 9.

    E85 gas station numbers were 2013 data (DOE) and the total number of gas station was 121,446 in January 2014 data [15].

  10. 10.

    Total bioethanol consumption was derived from DOE [5].

  11. 11.

    In addition to this, a miss-fueling mitigation plan is required in E15 gas stations.

  12. 12.

    Chapter 6 covers impacts of the US bioethanol market on consumers.

  13. 13.

    Refer to Table 1.4.

  14. 14.

    Data for this calculation were extracted from USDA-FAS [27] and USDA-FAS [4].

  15. 15.

    Data for this calculation were extracted from USDA-FAS [27] and USDA-FAS [4].

  16. 16.

    Data for this calculation were extracted from USDA-FAS [27] and FAO [34].

  17. 17.

    Converted from tons to L (0.88 kg/L).

  18. 18.

    Converted from tons to L (0.88 kg/L).

  19. 19.

    There are no official data for bioethanol and biodiesel production in South Africa.

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Koizumi, T. (2014). Biofuels and Food Security in the US, the EU and Other Countries. In: Biofuels and Food Security. SpringerBriefs in Applied Sciences and Technology. Springer, Cham. https://doi.org/10.1007/978-3-319-05645-6_5

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