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Energy Production with Biomass: What Are the Prospects?

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  • Gallagher, Paul W.

Abstract

The advantages and limitations of the U.S. ethanol industry have both become apparent during the current period of high petroleum prices. One advantage is that ethanol is cost-reducing as a gasoline additive and as a gasoline replacement using E85 (motor fuel blends of 85 percent ethanol and just 15 percent gasoline). However, corn supply limits ethanol's role in energy markets; ethanol-based corn demand will surpass exports when the 7.5 billion gallon Renewable Fuel Standard is fully implemented; and even if the Midwest were to secede from The Union, the entire Midwestern corn crop could only supply two-thirds of regional gasoline demand with ethanol. Clearly, a broader resource base and other processing technologies are needed if bioenergy is going to expand its role in the national energy scene.

Suggested Citation

  • Gallagher, Paul W., 2006. "Energy Production with Biomass: What Are the Prospects?," ISU General Staff Papers 200601010800001446, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200601010800001446
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    Cited by:

    1. Unknown, 2008. "The 30-Year Challenge: Agriculture's Strategic Role in Feeding and Fueling a Growing World," Issue Reports 45719, Farm Foundation.
    2. Pat Westhoff & Wyatt Thompson & John Kruse & Seth Meyer, 2007. "Ethanol Transforms Agricultural Markets in the USA L'éthanol transforme les marchés agricoles aux Etats‐Unis Ethanol transformiert die Agrarmärkte in den USA," EuroChoices, The Agricultural Economics Society, vol. 6(1), pages 14-21, April.
    3. John Quiggin, 2010. "Agriculture and global climate stabilization: a public good analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 121-132, November.
    4. Henderson, Jason R. & Gloy, Brent A., 2008. "The Impact of Ethanol Plants on Land Values in the Great Plains," 2007 Agricultural and Rural Finance Markets in Transition, October 4-5, 2007, St. Louis, Missouri 48148, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    5. Chao Bi & Jingjing Zeng & Wanli Zhang & Yonglin Wen, 2020. "Modelling the Coevolution of the Fuel Ethanol Industry, Technology System, and Market System in China: A History-Friendly Model," Energies, MDPI, vol. 13(5), pages 1-26, February.
    6. Zhang, Wendong & Irwin, Elena G. & Nickerson, Cynthia J., 2012. "The Expanding Ethanol Market and Farmland Values: Identifying the Changing Influence of Proximity to Agricultural Delivery Points," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124690, Agricultural and Applied Economics Association.
    7. Thompson, Wyatt & Meyer, Seth & Westhoff, Pat, 2009. "How does petroleum price and corn yield volatility affect ethanol markets with and without an ethanol use mandate?," Energy Policy, Elsevier, vol. 37(2), pages 745-749, February.
    8. Antar, Mohammed & Lyu, Dongmei & Nazari, Mahtab & Shah, Ateeq & Zhou, Xiaomin & Smith, Donald L., 2021. "Biomass for a sustainable bioeconomy: An overview of world biomass production and utilization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    9. Quiggin, John, 2005. "Counting the cost of climate change at an agricultural level," Risk and Sustainable Management Group Working Papers 152085, University of Queensland, School of Economics.
    10. Quiggin, John C., 2009. "Agriculture and global climate stabilization," 2009 Conference, August 16-22, 2009, Beijing, China 53204, International Association of Agricultural Economists.
    11. Henderson, Jason R. & Gloy, Brent A., 2008. "The Impact of Ethanol Plants on Cropland Values in the Great Plains," Working Papers 51080, Cornell University, Department of Applied Economics and Management.
    12. Brent A. Gloy & Jason Henderson, 2008. "The impact of ethanol plants on cropland values in the Great Plains," Regional Research Working Paper RRWP 08-01, Federal Reserve Bank of Kansas City.

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