Biofuels: Environmental controversies, political risks, and economic gains




by Lin Sun Oo


The resurgence of biofuels as a source of alternative energy is certainly not short of controversy. Advocates of biofuels argue that it is a potential replacement for petroleum. Opponents of biofuels have argued that the poor will further be marginalized when agriculture steers away from food to fuel the energy needs of developing countries. The environmental impacts of biofuels have been argued on both sides of the spectrum. Proponents argue that biofuels help in mitigating climate change by replacing carbon emitting fossil fuels. However, environmentalists have stated that biofuels could lead to the loss of topsoil. Certain environmentalist have expressed concerns over the  water intensive agricultural practices, use of pesticides, and the negative effects of large scale agriculture that biofuels could cause to an ecosystem. The benefits and disadvantages of biofuels have often been compared with its performance to petroleum. Biofuels are a leading candidate to replace petroleum as a renewable source of energy for transportation. As such, a historical exposition of the battle between biofuels and petroleum would help us to understand the controversies, political risks, and economic gains of biofuels.

Biofuels were once touted as a potential contender to petroleum during the infancy of the automobile industry. As the automobile industry matured, petroleum became the preferred choice for fuel. Several political, technological, and economic factors favored petroleum over biofuels. Government incentives, subsidies, and encouragement from political actors had aggrandized the oil industry to ensure that petroleum was the leading source of fuel for the automobile industry. Technologically, the extraction of oil provides more than just petroleum for automobiles. Petroleum based products are versatile and have been used extensively in products ranging from household items, commercial retail and industrial products. Economically, petroleum as a fuel source provides a higher yield of energy return on invested (EROI). Currently, petroleum plays an integral role in world energy consumption. In the United States, the Department of Energy indicated that 37.4% of energy use is derived from petroleum. In comparison, renewable energies such as biofuels only account for about 7.3%.  The oil crisis of 1973 and the resulting scare over energy security placed biofuels back into discussion as a means to offset heavy reliance on oil from the Middle East. In discussing alternative energy solutions, agriculture dominant regions favored initiating more biofuels projects. Political advocates promote biofuels under the banner of energy sovereignty and economic growth of fuel through agriculture. 

                          Image Source: BBC News


The introduction of first generation biofuels drew criticism over the use of feedstock such as grain that was being used as a fuel source and diverted from food consumption. With an increasing population concerns were expressed amidst the shift of food products over to fuel. The first generation biofuels projects were seen as diverting critical food sources from marginalized populations to fuel the energy needs of expanding developing countries. Moreover, environmentalist argue water intensive large scale agricultural projects for biofuels will cause an decrease access to much needed ground water, increases the loss in topsoil, and destroy native ecosystems as countries find biofuels more profitable and decide to expand. With opposition over the use of food crops as feedstock, the second generation of biofuels concentrates on non food crops such as algae, waste biomass, and cellulosic biofuels. Despite criticism and concerns over environmental impacts, ethanol has gained popularity among political actors looking to increase energy sovereignty.

Widespread mandates in various countries have increased the use of biofuels in a range of measures. Brazil produces 3.2 million gallons of biodiesel fuel per year. As such, Brazil meets 17% of its transportation needs from bioethanol. Biomass feedstock in the biofuels industry of Brazil consists of sugar cane, soy beans, and castor bean. Similar to initiatives introduced in Brazil countries such as China, Australia, the European Union, and the United States have taken various legislative initiatives to increase the use of biofuels. EU countries have targeted an increase in biofuels to 20% of the market share for energy production by the year 2020. In the United States, the 2007 Energy Security and Independence Act allowed for the use of 36 billion gallons of biofuels by 2022. Currently about 10% of ethanol is added with standard gasoline in the United States. In Europe similar programs have been mandated for the expansion of biofuels, such as ethanol, in public transportation and at the fuel pumps.

Despite the increase in biofuels programs worldwide, environmental concerns still remain a crucial test for biofuels as a renewable energy alternative. Despite introducing non food crop feedstock for biofuels sources, water pollution, and loss of forests have been a huge factor in environmental opposition for an increase in biofuels. Environmentalist argue that burning down forests, and destroying native ecosystems for agricultural purposes could potentially create more green house gases than gained through biofuels. Despite potential for energy security, environmental concerns, and food security will remain a critical obstacle for the biofuels industry to overcome. Sustainable biofuels such as jathropa, switch grass, and algae are still in their infancy. If they are going to develop, greater subsidies and research are needed to make biofuels more economically viable for public consumption. Until then, opinions over biofuels will vacillate between a blessing and a controversy.


Lin Sun Oo is an environmental policy research intern at Bridging Nations in Washington D.C.



Rebuilding A More Sustainable New Orleans

by Devin Benavidez

Five years after one of the most devastating natural disasters to ever hit the United States, New Orleans residents are still picking up the pieces. The rebuilding process, now five years old, is well under way and the spirit of perseverance has reinvigorated a city that was left in ruins in August of 2005 by the category five hurricane. In efforts to restore the city known for its southern hospitality and Cajun cuisine, non profit organizations spearheaded by internationally recognized figures have invested in rebuilding affordable, environmentally friendly homes in the areas most devastated neighborhoods.

Brad Pitt’s Make it Right Foundation is planning to build 150 homes in New Orleans’ Lower Ninth Ward,  a low income neighborhood that has been slow to recover in the aftermath of Hurricane Katrina. Global Green, the American arm of former Soviet President Mikhail Gorbachev’s Green Cross International, is also working to educate New Orleans residents about renewable energy solutions and is building a “sustainable village” in the Lower Ninth Ward that will consist of 5 single-family homes, an 18-unit apartment building, and a community and climate action center.




                                       Model of new 'green' homes (Source: keetsa.com)

Before Hurricane Katrina, the state of Louisiana lacked a green jobs sector and the traditional homes in New Orleans were tremendously energy inefficient. By capitalizing on the need for sustainable homes in New Orleans, organizations like Global Green have extended the dialogue about renewable energy to those who may have previously rejected the label of ‘environmentalist.’ By incorporating people who have been traditionally left out of the discourse on sustainability, such as low income families, non profit organizations assisting with the rebuilding of New Orleans have been successful in creating an environmental awareness among its citizens and have built homes that are 70-90 percent more efficient. Energy efficient homes in the Lower Ninth Ward not only help to reduce the need for traditional sources of energy, but also manage to cut down on the cost of utility bills, an aspect that has many residents in the Ninth Ward enthusiastic about the payoff of energy efficient design.

The move toward sustainability in New Orleans was facilitated by the passage of a 2007 state tax credit for renewable energy. This law, the most progressive renewable energy law in the country, mandates that the state provide a tax credit for 50 percent of the total cost of the renewable energy system. Louisiana residents are also able to take advantage of a 30 percent federal tax credit for renewable energy system installation. As a result, the green jobs sector in Louisiana has grown dramatically, expanding from only 3 to more than 110 solar panel installation companies since 2007. Additionally, New Orleans currently has the highest number of green, single-family, affordable housing units being built than in any other city in the country.

The expansion of the green jobs sector in Louisiana and the willingness of the residents to adopt sustainability into their design plans is symbolic of the growing support nationwide for a greener economy. The rebuilding process in New Orleans should not only serve to restore charm to this great city, but should also provide the impetus necessary to jump-start our nation’s green jobs sector.  

Devin Benavidez is a Research Intern at Bridging Nations in Washington, D.C., and has a BA in political science from California State University, Long Beach.