ABSTRACT
This chapter aims to describe from a regional perspective how the changing economic climate may drive potential environmental consequences. Growth of the biofuels sector may provide employment opportunities but may also create problems for water quality and other environmental concerns. Given the spillover effects of expanded corn acreage on agricultural markets and the environment, technologies are being developed to produce cellulosic ethanol from a wide range of feedstocks, including crop residues and new crops dedicated to energy production, such as switchgrass. The Conservation Reserve Program, which removes environmentally sensitive cropland from production under long-term rental agreements, could also be part of a broader agricultural biofuel strategy. Volatile petroleum prices, along with federal policies aimed at reducing the United States' dependency on oil imports and mitigating climate change, have sparked rapid growth in biofuel demand. Federal policy initiatives and private-sector investment point to continued growth in biofuel production and, consequently, increased demand for agricultural products.
