ABSTRACT

This chapter summarizes the interrelated strategic, economic, and environmental issues that affect transportation fuels. It outlines related legislation, such as alternative fuel tax incentives and environmental regulations. Strategic issues address national security, focusing on the impact of petroleum imports and the need to develop critical technologies. The economic issues discussion focuses on the impact of alternative fuels and alternative fuel vehicle development on the agricultural sector and on the development of new, related industries. The discussion of environmental issues includes the impact of the transportation sector on air, water, and land pollution, on climate change, and on human health and welfare. Three economic factors primarily affect the transportation fuel market: resource availability; domestic industry development; and tax issues, especially in the overall economics of alternative fuels. Pollution from petroleum-based transportation fuels has enormous negative economic, social, and environmental impacts on human health, agricultural productivity, buildings, visibility, and wildlife habitats.