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Liquid Biofuels for Transportation: Lessons of the Last Two Decades for the Next Two
Deepak Rajagopal1, Gal Hochman2, Shruti K Mishra3
1Institute of the Environment and Sustainability and Department of Urban Planning, University of California, Los Angeles, California 90024, United States.
Environmental Science & Technology
|March 10, 2026
Summary
Biofuel policies spurred growth but impacts are uncertain. Targeted policies for advanced biofuels from waste and crops are crucial for sustainable innovation in aviation and shipping.
Area of Science:
- Sustainable energy and environmental policy.
- Agricultural economics and lifecycle assessment.
Background:
- Global biofuel production (ethanol, biodiesel) from edible crops has surged fivefold in 25 years due to mandates and subsidies.
- The economic and environmental consequences of this growth are complex and depend on various factors like feedstock, practices, and policy assumptions.
Purpose of the Study:
- To provide a forward-looking perspective on biofuel policies.
- To identify strategies for advancing sustainable biofuel technologies and adoption.
Main Methods:
- Review of existing biofuel policies and their impacts.
- Analysis of economic and environmental factors influencing biofuel sustainability.
- Consideration of technological advancements in energy storage and alternative fuels.
Main Results:
- Biofuels remain relevant for emissions reduction in hard-to-abate sectors like aviation and shipping.
- Advanced biofuels face technological and economic hurdles requiring improved policy interventions.
- Targeted policies are more effective in promoting innovation in biofuels from waste biomass and energy crops.
Conclusions:
- Lifecycle-emissions-based performance standards and incentives for ecosystem services can drive sustainable biofuel development.
- Policies that reduce regulatory uncertainty, such as flexible annual targets, are essential for technological breakthroughs and wider adoption.
- A shift towards more targeted and performance-driven policies is needed to enhance biofuel sustainability.
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