Biofuels and Rural Economic Development in Latin America and the Caribbean

Biofuel expansion is seen as a way to reduce dependence on fossil fuels, as an alternative energy source for transportation and other uses, as a way to reduce Green House Gases, and as way to revitalize the agricultural sector. Very little discussions have been focused on Latin America, except for Brazil. Potential negative impacts re-enforce the need of performing more in depth analysis of the potential impact of biofuels expansion in Latin America and the Caribbean (LAC). Paper estimates biofuels production potential based on current production situation and develops a forward-looking analysis of the long-term impact of biofuels expansion in Latin America and its effects on prices, trade, food security, malnutrition and other indicators using the IMPACT-WATER model developed by IFPRI. The analysis conducted for this paper of potential crops in the region show that from a technical and productivity standpoint in which to base biofuels expansion continues to be sugarcane and palm oil trees. Most countries in Latin America will not have a production constraint in terms of meeting existing and projected mandatory blends requirements. However, if the goal is to obtain energy independence, this result only holds for a few countries, with obvious food security implications as countries dedicate higher shares of their agricultural land to biofuels expansion. Our analysis, and those made in other studies, show that biofuels expansion is not likely to have a binding land production constraint in Latin America, with a few exceptions. The forward-looking estimations from the IMPACT-WATER model show that Brazil will continue to be the major player in the ethanol market. Brazil will expand its ethanol exports to meet growing demand in other countries including some in Latin America. Other countries such as Argentina and Colombia will likely continue their biofuels expansion plans, although our estimate show that they will not likely meet their demand based on current production potential. The IMPACT-WATER simulations also show that biofuels impacts on food security and malnutrition will likely happen in those countries where the feedstock used for biofuels production is a critical component of a major share of the population, other things equal. An example of this potential is Mexico and most of the Central America region, where a high proportion of the diet is composed of maize. The extent to which biofuels efforts can contribute towards addressing or affecting all broader contextual issues depend on a series of strategic determinants of impact success, ranging from the characteristics of installed capacity and industrial organization and coordination to whether any nascent market for biofuels will be economically sustainable and financially viable without continuous government support or interventions.Community/Rural/Urban Development, Resource /Energy Economics and Policy,

Biofuels Potential in Latin America and the Caribbean: Quantitative Considerations and Policy Implications for the Agricultural Sector

Rising oil prices has led to increased interest to replace domestic demand for liquid fuels for transport (petrol and diesel) with biofuel production (ethanol and biodiesel). One of the pioneers in biofuel production is Brazil, which since the 1970s has established a government program that promotes the production and consumption of ethanol. Currently, Brazil is the leading producer of ethanol in the world and has started also programs for biodiesel production based on soybeans, oil palm and other crops. Other countries in Latin America and the Caribbean have also expressed interest in biofuel production, and have started programs, and in some cases the legislation that promotes biofuel production. However, most of the analysis of biofuel crops has been focused in the major countries such as Brazil and Argentina. As most countries in the region embark in biofuel projects and establish national policies on biofuels, there is a need for a roadmap that looks into the technical considerations that biofuel production will require. Most government policies are driven by politics, and in some cases such as the discussion of food production versus biofuel production, there should be technical analysis of increased production of biofuels. For those reasons, this study offers the first complete assessment of the potential of biofuels in Latin America and the Caribbean for 28 countries in the region, based on 12 agricultural and forestry crops. We first identify the biofuel production potential based on current surplus production, as a catalyst of biofuel production in the region. We then estimate the land requirements based on a 5% replacement of domestic liquid fuel demand, and the suitable available area in each country for such replacement. We also project biofuel production and available land area needed to meet food and nutrition targets for countries in the region to 2025. The results of this study show that the crops with the largest potential in Latin America and the Caribbean are sugar canes and cassava. Based on current production levels the conversion of sugar cane into bioethanol could surpass the 5% mix in more than half of the domestic markets of the countries surveyed. For biodiesel, countries with current surplus production that could be transformed to biodiesel and exceed the 5% mix include Argentina, Bolivia, Paraguay, Costa Rica and Honduras. For land, Latin America, particularly South America may have enough suitable land for production of biofuels, specially sugar cane, soybeans and oil palm, the main crops identified in this study. As for food supply and security and the future production of biofuels to 2025, we find that for major food exporters, there is enough land for both food and energy crop production. However, there are some smaller countries, especially in Central America and the Caribbean that may have to decide whether to import food and produce energy from crops. In term of the effect on prices, we find that increased biofuel production may have important price effects the effect may depend we analyze energy crops, traditional crops or byproducts of biofuel production. Finally, in terms of the impact on agricultural structure and land ownership, the most significant structural changes consist in a higher concentration in production and tenure as well as the establishment of new kind of actors and norms. Policies and institutions should be established that enables small producers to take advantage of increased biofuel production, so they can benefit in terms of employment, income, as means for poverty reduction in rural areas of Latin America and the Caribbean.Biofuels, land availability, price effect, agricultural structure, Latin America, Caribbean, Resource /Energy Economics and Policy, Q42, Q48, Q11, Q15,

Biofuel scenarios in a water perspective: the global blue and green water footprint of road transport in 2030

The trend towards substitution of conventional transport fuels by biofuels requires additional water. The EU aims In the last two centuries, fossil fuels have been our major source of energy. However, issues concerning energy security and the quality of the environment have given an impulse to the development of alternative, renewable fuels. Particularly the transport sector is expected to steadily switch from fossil fuels to a larger fraction of biofuels - liquid transport fuels derived from biomass. Many governments believe that biofuels can replace substantial volumes of crude oil and that they will play a key role in diversifying the sources of energy supply in the coming decades. The growth of biomass requires water, a scarce resource. The link between water resources and (future) biofuel consumption, however, has not been analyzed in great detail yet. Existing scenarios on the use of water resources usually only consider the changes in food and livestock production, industry and domestic activity. The aim of this research is to assess the change in water use related to the expected increase in the use of biofuels for road transport in 2030, and subsequently evaluate the contribution to potential water scarcity. The study builds on earlier research on the relation between energy and water and uses the water footprint (WF) methodology to investigate the change in water demand related to a transition to biofuels in road transport. Information about this transition in each country is based on a compilation of different energy scenarios. The study distinguishes between two different bio-energy carriers, bio-ethanol and biodiesel, and assesses the ratio of fuel produced from selected first-generation energy crops per country. For ethanol these crops are sugar cane, sugar beet, sweet sorghum, wheat and maize. For biodiesel they are soybean, rapeseed, jatropha, and oil palm

Biofuels : markets, targets and impacts

This paper reviews recent developments in biofuel markets and their economic, social and environmental impacts. Several countries have introduced mandates and targets for biofuel expansion. Production, international trade and investment have increased sharply in the past few years. However, several existing studies have blamed biofuels as one of the key factors behind the 2007-2008 global food crisis, although the magnitudes of impacts in these studies vary widely depending on the underlying assumptions and structure of the models. Existing studies also have huge disparitiesin the magnitude of long-term impacts of biofuels on food prices and supply; studies that model only the agricultural sector show higher impacts, whereas studies that model the entire economy show relatively lower impacts. In terms of climate change mitigation impacts, there exists a consensus that current biofuels lead to greenhouse gas mitigation only when greenhouse gas emissions related to land-use change are not counted. If conversion of carbon rich forest land to crop land is not avoided, the resulting greenhouse gas release would mean that biofuels would not reduce cumulative greenhouse gas emissions until several years had passed. Overall, results from most of the existing literature do not favor diversion of food for large-scale production of biofuels, although regulated production of biofuels in countries with surplus land and a strong biofuel industry are not ruled out. Developments in second generation biofuels offer some hope, yet they still compete with food supply through land use and are currently constrained by a number of technical and economic barriers.Energy Production and Transportation,Renewable Energy,Climate Change Mitigation and Green House Gases,Food&Beverage Industry,Environmental Economics&Policies

Effect of flocculation on lipid extraction from Chlorella vulgaris Utex 1803 using response surface methodology

Microalgae are an attractive source of metabolites, such as lipids, proteins, pigments and carbohydrates, of potential interest to the pharmaceutical, food and energy sectors. The aim of this study was to evaluate the effect of flocculation on lipid extraction from Chlorella Vulgaris. A 3 3 experimental design was performed with STATISTICA 7.0 software in order to determine the effects of flocculant (AlCl 3 ) addition, pH and time. The best strategy of pH adjustment-flocculant addition was evaluated, followed by lipid extraction under optimal conditions. pH adjustment after the addition of flocculant provided higher flocculation efficiencies (87.2-98.9%) compared to adjustments made before adding the flocculant (67.8-85.9%). Experiments performed according to the experimental design led to a flocculation efficiency of 99.7% when 100 mg/L of AlCl 3 , pH 7 and a cultivation time of 18.3 days were used. The percentage of a lipid extract from the flocculated biomass was 2.7% and the flocculant did not affect the production of fatty acid methyl esters

Globalization and land-use transitions in Latin America

Current socioeconomic drivers of land-use change associated with globalization are producing two contrasting land-use trends in Latin America. Increasing global food demand (particularly in Southeast Asia) accelerates deforestation in areas suitable for modern agriculture (e.g., soybean), severely threatening ecosystems, such as Amazonian rain forests, dry forests, and subtropical grasslands. Additionally, in the coming decades, demand for biofuels may become an emerging threat. In contrast, high yields in modern agricultural systems and rural–urban migration coupled with remittances promote the abandonment of marginal agricultural lands, thus favoring ecosystem recovery on mountains, deserts, and areas of poor soils, while improving human well-being. The potential switch from production in traditional extensive grazing areas to intensive modern agriculture provides opportunities to significantly increase food production while sparing land for nature conservation. This combination of emerging threats and opportunities requires changes in the way the conservation of Latin American ecosystems is approached. Land-use efficiency should be analyzed beyond the local-based paradigm that drives most conservation programs, and focus on large geographic scales involving long-distance fluxes of products, information, and people in order to maximize both agricultural production and the conservation of environmental services.Fil: Grau, Hector Ricardo. Universidad Nacional de Tucumán. Facultad de Ciencias Naturales e Instituto Miguel Lillo; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Tucumán; ArgentinaFil: Mitchell, Aide. Universidad de Puerto Rico; Puerto Ric

Unintended Environmental Consequences of a Global Biofuels Program

Abstract and PDF report are also available on the MIT Joint Program on the Science and Policy of Global Change website (http://globalchange.mit.edu/).Biofuels are being promoted as an important part of the global energy mix to meet the climate change challenge. The environmental costs of biofuels produced with current technologies at small scales have been studied, but little research has been done on the consequences of an aggressive global biofuels program with advanced technologies using cellulosic feedstocks. Here, with simulation modeling, we explore two scenarios for cellulosic biofuels production and find that both could contribute substantially to future global-scale energy needs, but with significant unintended environmental consequences. As the land supply is squeezed to make way for vast areas of biofuels crops, the global landscape is defined by either the clearing of large swathes of natural forest, or the intensification of agricultural operations worldwide. The greenhouse gas implications of land-use conversion differ substantially between the two scenarios, but in both, numerous biodiversity hotspots suffer from serious habitat loss. Cellulosic biofuels may yet serve as a crucial wedge in the solution to the climate change problem, but must be deployed with caution so as not to jeopardize biodiversity, compromise ecosystems services, or undermine climate policy.This study received funding from the MIT Joint Program on the Science and Policy of Global Change, which is supported by a onsortium of government, industry and foundation sponsors