A probabilistic financial model was developed to assess the economic feasibility of energy-cane-based hydrolysis ethanol production. At an expected price of $1.97/gallon and no tax credit, the chances of a positive NPV were 70%. By slightly increasing feedstock and ethanol yields by 5 units, the...

Contrary to developments in other parts of the world, South Africa has not developed a bio-ethanol industry. The objective was to quantify the risks and economic viability of a wheat based bio-ethanol plant in the winter rainfall region of South Africa. Monte Carlo simulation of a bio-ethanol...

The European Union’s Emission Trading Scheme (EUETS) and the current renewable resource program provide strong incentives to use agricultural crops either for combustion in power plants to produce electricity and heat or as a feedstock for transportation fuels. In this paper we examine the...

Rising energy prices and changing energy and environmental policies have transformed the relationship between the energy and agriculture sectors. Traditionally, the relationship has been one-way, with agriculture using energy products as an input in production; during the past decade, however,...

In Hungary difficulties in the utilisation of bio-fuels are mainly caused by problems of economy and not by technical problems. Currently, the key factor in development – according to the authors of this article – would be a new version of the relevant legal provisions, which would...

This article analyses the impact of national, European and global biofuel targets on German food production and land allocation until 2020. The LEITAP General Equilibrium Model simulates the interaction of agricultural and energy markets in response to the envisaged expansion of the biofuel...

Based on their theoretical predictions, Kliauga, de Gorter, and Just (2008) and de Gorter,Drabik, and Just (2010) argue that the United States and the European Union establish the worldethanol and biodiesel prices, respectively. We test these theories using cointegration analysisand the Vector...

Replaced with revised version of paper 12/06/06.

Life cycle analysis (LCA) is the standard approach used to evaluate the greenhouse gas (GHG) benefits of biofuels. However, it is increasingly recognized that LCA results do not account for some impacts including land use changes that have important implications on GHGs. Thus, an alternative...

This paper analyses the economics of biofuel production and the implications that the accelerating growth in biofuel production in many countries could have on agricultural markets. It shows that production costs of ethanol and biodiesel differ significantly across countries and feedstock crops....