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U.S. Biodiesel Development: New Markets for Conventional and Genetically Modified Agricultural Products

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  • Duffield, James A.
  • Shapouri, Hosein
  • Graboski, Michael S.
  • McCormick, Robert
  • Wilson, Richard

Abstract

With environmental and energy source concerns on the rise, using agricultural fats and oils as fuel in diesel engines has captured increasing attention. Substituting petroleum diesel with biodiesel may reduce air emissions, increase the domestic supply of fuel, and create new markets for farmers. U.S. agricultural fats and oils could support a large amount of biodiesel, but high production costs and competing uses for biodiesel feedstocks will likely prevent mass adoption of biodiesel fuel. Higher-priced niche markets could develop for biodiesels as a result of environmental regulations. Biodiesel has many environmental advantages relative to petroleum diesel, such as lower CO, CO2, SOx, and particulate matter emissions. Enhancing fuel properties by genetically modifiying oil crops could improve NOx emissions, cold flow, and oxidative stability, which have been identified as potential problems for biodiesel. Research activities need to be directed toward cost reduction, improving fuel properties, and analyzing the economic effects of biodiesel development on U.S. agriculture.

Suggested Citation

  • Duffield, James A. & Shapouri, Hosein & Graboski, Michael S. & McCormick, Robert & Wilson, Richard, 1998. "U.S. Biodiesel Development: New Markets for Conventional and Genetically Modified Agricultural Products," Agricultural Economic Reports 34029, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:34029
    DOI: 10.22004/ag.econ.34029
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    References listed on IDEAS

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    1. Sanford, Scott & Evans, Sam, 1995. "Peanuts: Background for 1995 Farm Legislation," Agricultural Economic Reports 308422, United States Department of Agriculture, Economic Research Service.
    2. Swenson, Andrew L. & Johnson, Roger G. & Helgeson, Delmer L. & Kaufman, Kenton R., 1983. "Economics of Producing Sunflower for Fuel on Diverted Acres," Agricultural Economics Reports 23400, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. Morgan, Nancy, 1993. "World Vegetable Oil Consumption Expands and Diversifies," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 16(2), May.
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    Citations

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    Cited by:

    1. Milazzo, M.F. & Spina, F. & Cavallaro, S. & Bart, J.C.J., 2013. "Sustainable soy biodiesel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 806-852.
    2. Wassell, Charles Jr. & Dittmer, Timothy P., 2006. "Are subsidies for biodiesel economically efficient?," Energy Policy, Elsevier, vol. 34(18), pages 3993-4001, December.
    3. Sierra-Cantor, Jonathan Fabián & Guerrero-Fajardo, Carlos Alberto, 2017. "Methods for improving the cold flow properties of biodiesel with high saturated fatty acids content: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 774-790.
    4. Lanjekar, R.D. & Deshmukh, D., 2016. "A review of the effect of the composition of biodiesel on NOx emission, oxidative stability and cold flow properties," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1401-1411.
    5. Szulczyk, Kenneth R. & McCarl, Bruce A., 2010. "Market penetration of biodiesel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2426-2433, October.
    6. Smith, Paul C. & Ngothai, Yung & Dzuy Nguyen, Q. & O'Neill, Brian K., 2010. "Improving the low-temperature properties of biodiesel: Methods and consequences," Renewable Energy, Elsevier, vol. 35(6), pages 1145-1151.
    7. Brockmeier, Martina & Urban, Kirsten, 2008. "Assessing the Impacts of Agricultural Policies on the Global, National and Farm level - A Survey of Model Systems," Conference papers 331684, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Szulczyk, Kenneth R. & McCarl, Bruce A. & Cornforth, Gerald, 2010. "Market penetration of ethanol," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 394-403, January.
    9. Juan Manuel Dominguez Andrade, 2012. "El Mercado Bio-combustible : Escenarios hipotéticos," Revista de Economía del Caribe 10280, Universidad del Norte.
    10. Juan Manuel Domínguez, 2015. "An Analysis of the Technological Structure of Refineries and Blenders: Estimation of the Leontief Multiproduct Cost Function and Reservation Prices," Revista Equidad y Desarrollo, Universidad de la Salle, May.

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