Global oil production has reached its peak. This year ethanol manufacturing and distribution policies have led the way towards flex-fuel and electric vehichle tax credits regulating global biofuel and ethanol prices. Added criticism of ethanol and biofuel tehcnologies without subsidies has been responsible for driving up food prices.
Increased national security and energy policies have led to the reduction of national and global carbon emissions due to the increased consumption of gasline blended ethanol fuels. Mandated ethanol, and biofuel blending technologies has led to an increase demand in agricultural based fuels by more than 8%. Ethanol fuels have slowly increased fuel supplies by more than 7% in the US. Howerver, flex-fuel technologies have curbed carbon emissions in the European Union by more than 70% experiencing an increase in production by as much as 83%.
The consumption of biofuels due to blending of oil based fossil fuels, under global fuel initiatives to control Green House Gases (GHG), assures global participants in the production of ethanol celluloid-fuels using lignocellulose, switchgrass and miscanthus, palm, and jathropa and flex-fuel technologies.
Price increases in food markets in the past have been driven up by speculation in the agricultural based energy market. The volume reduction in food production temporarily increases food prices without offsetting fossil fuel tax incentives. It is necessary to encourage less developed countries, to plant more vegetables and grains. The need for alternative fuels has become a significant factor in the depletion of agricultural farm yields over time. As the demand for both fuel, and food production rise, the demand for ethanol blended fuels drive market forces.
Regulations and tariffs regulating biofuels mandate trade protection policies setting current import tariffs on alternative fuels manufactured in NAFTA countries. Due to the increased production of E-85 in Brazil, trade restrictions have been put into place to protect small growers producing secondary feedstock, impacted by Brazil’s interests to produce more than 5% of the world’s fuel supply.
Life Cycle Analysis: Net Negative Incentives
The measured life-cycle assessment (LCA) of biofuels produces a net negative reduction. The reduction in Green House Gas (GHG) emissions are reduced due to the use of second generation biofuels. Under the LCA environmental changes are not known as the transportation industry transition from corn based ethanol feedstock. Reduced emissions are expected to shift production towards cleaner burning celluloid-fuels using lignocellulose, switchgrass and miscanthus, palm, and jathropa.
The surge in oil prices that characterized the 2003–2008 period brought ethanol back to its initial success. Ethanol became once again a cheap and sought after alternative to oil. Furthermore, the introduction of Flex-Fuel engine technology, which allows drivers to run on gasoline, and/or ethanol, has contributed to the increase in ethanol market shares.
Setting Energy Policies
The IRS through the Energy Policy Act of 2005, offsetting the current year purchase of Hybirds and Advanced Vehichles, offers a tax credit up to $2,350.
The main guidelines for setting policies directed at biofuel feedstock production was introduced under the Energy Policy Act of 2007.. The corn industry is gauged from the statistic that 20% of the US non-foodstock corn supply was employed as an ethanol euel used as a blender for gasoline consumption. In the past federal incentives were regulated under the Volumetric Ethanol Exercise Tax Credit (VEETC) regulating tax incentives for ethanol producers.
Meeting future demands will require development of multiple fuels and new transportation technologies. In order to remove the total demand for gasoline and ethanol abuse by energy markets is to switch to electric-hybrid, and electric vehicles for future generations. Developing clean alternatives will reduce further emissions contributed by CO2 addicted countries, reducing the world’s total dependency on fossil fuel technologies by more than 83% through the use of flex-fuel technologies.