Carbohydrate crops as a renewable resource for fuels production. Volume II. Identification of key policy issues, alternatives, and implications relating energy from biomass

The objectives of this research program were threefold: Provide a brief summary assessment of current and developing technologies utilizing carbohydrate crops as potential energy resources; provide an economic analysis of current agricultural policies and their implications concerning the potential use of the carbohydrate crops as biomass energy sources; and identify and examine alternative policies for stimulating biomass production for fuel uses. The conclusions of this preliminary analysis of policy implications suggest the following: (1) Significant quantities of ethanol from carbohydrate crops could be produced from the equivalent number of dollars currently diverted and expected to be spent under the Food and Agriculture Act of 1977 (FAA-'77). (2) However, the production of ethanol from sugar crops or corn would mean that significant changes in the prices of agricultural products could be expected (all other things being equal). (3) In the initial development of ethanol fuels, ethanol from corn appears to be the least expensive as compared to sugarcane, sugar beets, and sweet sorghum. This is primarily because of high by-product credits. However, the crop with the greatest long-term potential is sweet sorghum. (4) Various policy incentive programs will continue to be directed towards stimulating biomass energy production. Several incentive systems alreadymore » have been recommended in Congress and among the states. Key among these is the present waiver of the Federal Excise Tax through 1984 on gasohol. Battelle has cited a number of potential incentive programs. Each incentive will tend to stimulate different areas of biomass and fuels production. Also, the programs likely will have secondary impacts on other segments of the U.S. agricultural sector. Four policy incentive programs are described in detail.« less