Chapter 4

Government Policies to Support Biofuel Production: Why and to What Effect?

Kurt K. Klein and Danny G. Le Roy


The principal reasons for using public policies to stimulate the production of ethanol in North America are to lower greenhouse gas emissions, increase farm income through the introduction of a new market for farm commodities, promote rural development and diversification, and reduce consumer reliance on imported fossil fuels. All these policy objectives are satisfied to some extent by biofuel production and consumption in North America. However, the degree to which they are fulfilled is modest at best, and there are important negative consequences.

Total Pages: 13-23 (11)

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