Biomass as Sustainable Energy: The Potential and Economic Impacts on U.S. Agriculture

Randall Reese, Satheesh V. Aradhyula, Jason F. Shogren, Shaine Tyson
April 1992  [92-WP 92]

This paper addresses the economic feasibility and impacts on U.S. agriculture of establishing a biomass crops industry capable of producing 8 quads methanol or 9.4 quads ethanol by the year 2030 from grasses grown as biomass feedstocks. The results suggest that such an industry could become commercially viable and that the agricultural economy would benefit. Producers of traditional and biomass crops would benefit most. While consumers and livestock producers would be worse off as a result of higher crop prices, society would gain from reduced government payments to crop producers and from lower levels of air pollution.

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