Economic Impacts of Biofuel Development

The impact of biofuel development should be significant to the economy of any nation that successfully deploys it. By becoming more energy self-sufficient, the balance of trade of otherwise energy-dependent nations should improve dramatically - as it has in Brazil.

However, the impact on the economy of the region producing the biofuels is even more impressive. Iowa was one of the most energy dependent states in the Union. Now, because of corn ethanol, it is one of the most energy independent. The state's economy has improved, schools are better, and land prices are higher - not because of ethanol subsidies, but because of the invigorating impact of the formation of new business ventures and the production of a valuable product to export.

Now a new report from researchers from North Dakota State University, published on the Agricultural Marketing Resource Center website, measures the statewide impact of the corn ethanol industry in North Dakota and projects the economic impact of cellulosic ethanol production on the Midwest and Great Plains states. Of course, the feedstocks for cellulosic ethanol are not only to be found in this region. It is not too much of a stretch to believe that these impacts could be duplicated, if not surpassed, in other regions of the country (and the world) where feedstocks are abundant and the need is greatest.

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