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Market Adoption of Biofuels Depends on Government, Industry Collaboration

Bloomberg BNA’s expert authors analyze the use of biofuels as an alternative transportation fuel, particularly given the growing demand, availability, and environmental impacts of traditional petroleum production. 

 

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By Eric M. Jamison and Bruce Dale (February 27, 2012)

Energy-related issues are at the forefront of U.S. policy initiatives, industry efforts, and university research. Of particular concern are liquid transportation fuels, a market that is almost completely dominated by petroleum. As economies around the globe develop and mature, there is an increased demand for liquid transportation fuel sources. Even as demand increases, fossil fuel supply is diminishing. Many of the facilities essential to production of transportation fuels are in politically unstable parts of the world, and in countries undergoing political reformation. Against the backdrop of increasing demand, decreasing supply, and political instability, more emphasis is placed on producing domestic oil and discovering other sources of transportation fuel. However, after the oil spills in the Gulf of Mexico and the Kalamazoo River in Michigan, sources of traditional energy that are most accessible to the U.S. market are under increased scrutiny and pressure due to the potential environmental risks associated with such projects. In recent years, the use of biofuels as an alternative transportation fuel has been much discussed among policymakers, producers, and academics.


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