New study highlights importance of trade in int’l biofuel use
A new report has been released by the USDA’s Economic Research Service that overviews the growth of the global biofuels industry. Written by Jayson Beckman, an economist with USDA ERS, the report, “Biofuel Use in International Markets: The Importance of Trade,” focuses on the favorable market conditions and policies that have led to remarkable international growth in biofuels.
The study found that global biofuel production grew rapidly from 2001 to 2013. For the largest producers—the U.S., Brazil, and the EU—biofuel production increased 462 percent. Most of the rapid growth, however, was before 2011. The report shows that after 2011, growth still occurred but at a much slower rate. “Moderating prices, along with the saturation of the corn ethanol market in the United States, increased the importance of energy policies as a way to help sustain biofuel production and consumption during this second phase,” the report stated. Several countries outside of the three major producers, however, experienced rapid growth in biofuel—especially biodiesel—production during this time of “slowed growth.”
While biofuel production growth slowed globally beyond 2011, the report indicates that trade increased significantly due to favorable market conditions and energy policies mandating use of renewable fuels.
To access the full report, click here.
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