New study highlights importance of trade in int'l biofuel use

A brand new report has been released through the USDA’s Economic Research Support that overviews the growth from the global biofuels industry. Authored by Jayson Beckman, an economist with USDA ERS, the actual report, “Biofuel Use in Worldwide Markets: The Importance of Trade, ” focuses on the favorable market circumstances and policies that have resulted in remarkable international growth within biofuels.

The study found which global biofuel production increased rapidly from 2001 in order to 2013. For the largest producers-the U. S., Brazil, and also the EU-biofuel production increased 462 percent. Most of the rapid development, however , was before year 2011. The report shows that right after 2011, growth still happened but at a much reduced rate. “Moderating prices, combined with the saturation of the corn ethanol market in the United States, increased the value of energy policies as a way to assist sustain biofuel production as well as consumption during this second stage, ” the report mentioned. Several countries outside of the 3 major producers, however , skilled rapid growth in biofuel-especially biodiesel-production during this time of “slowed growth. ”

While biofuel production growth slowed internationally beyond 2011, the statement indicates that trade more than doubled due to favorable market problems and energy policies mandating use of renewable fuels.

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