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The recent and rapidly growing interest in biofuel as a green energy source has raised concerns about its impact on the prices, returns and volatility of related agricultural commodities. Analyzing the spillover effects on agricultural commodities and biofuel helps commodity suppliers hedge their portfolios, and manage the risk and co-risk of their biofuel and agricultural commodities. There have been many papers concerned with analyzing crude oil and agricultural commodities separately. The purpose of this paper is to examine the volatility spillovers for spot and futures returns on bio-ethanol and related agricultural commodities, specifically corn and sugarcane. The diagonal BEKK model is used as it is the only multivariate conditional volatility model with well-established regularity conditions and known asymptotic properties. The daily data used are from 31 October 2005 to 14 January 2015. The empirical results show that, in 2 of 6 cases for the spot market, there were significant negative co-volatility spillover effects: specifically, corn on subsequent sugarcane co-volatility with corn, and sugarcane on subsequent corn co-volatility with sugarcane. In the other 4 cases, there are no significant co-volatility spillover effects. There are significant positive co-volatility spillover effects in all 6 cases, namely between corn and sugarcane, corn and ethanol, and sugarcane and ethanol, and vice-versa, for each of the three pairs of commodities. It is clear that the futures prices of bio-ethanol and the two agricultural commodities, corn and sugarcane, have stronger co-volatility spillovers than their spot price counterparts. These empirical results suggest that the bio-ethanol and agricultural commodities should be considered as viable futures products in financial portfolios for risk management. [ABSTRACT FROM AUTHOR]

Abstract: While biofuels have currently been regarded as a good alternative for fossil fuels, there remain many debates on their impacts on human and environment. This paper tried to shed light on bio-ethanol in Brazil as one of the main producers and exporters in the world. The main question was to understand “how sustainable is bio-ethanol production in Brazil?” To answer, the political motives of producing bio-ethanol followed by its ecological and socio-economic impacts were discussed. The paper concluded that although bio-ethanol production in Brazil seems environmentally friendly, it might socio-economically be hazardous. [Copyright &y& Elsevier]

Abstract: The production of bioethanol from agricultural residues such as wheat, barley, sugar cane, corn and rice in Iran is investigated in this paper. In Iran, agricultural residues are not commonly used for energy application. This paper aims to cover several perspectives on the size of the bioethanol feedstock resource in Iran. Crop residues and sugar cane bagasse are included in feedstock for production of bioethanol. There are approximately 17.86MT of wasted crops in Iran that can potentially produce 4.91GL of bioethanol per year. Wheat, sugar cane bagasse, rice, barely and corn are the most favourable bioethanol production source in Iran. Agricultural waste materials can be used for production of bioethanol fuel. Bioethanol can be considered as the optimum alternative fuel for gasoline. Bioethanol is an environmentally friendly fuel and has the potential to provide comparable engine performance results. [Copyright &y& Elsevier]

The potential for sugarcane ethanol from Brazil to mitigate GHG emissions is undeniable, but the way that ethanol is produced during the agricultural and industrial phases will ultimately determine its benefits to society. In this paper, we evaluate the environmental impacts of sugarcane agriculture and ethanol production in Brazil as management practices continue to change and production expands to new frontiers. We focused our evaluation on the impacts on water, atmosphere, and soils, including how the application of organic and inorganic fertilizers and the accumulation of crop residue in the field affect emissions of greenhouse gases (GHG). We also addressed the impacts of land use changes on threatened biomes and discussed some of the present obstacles regarding conservation and restoration efforts. We concluded that, since a similar assessment was put forth in 2008, our knowledge about the environmental impacts of sugarcane ethanol in Brazil has advanced with regard to soil degradation, nitrogen dynamics, and soil carbon stocks. However, more information is still needed about the impacts of the increasing use of pesticides, herbicides, and fertilizers in sugarcane agriculture, especially on water resources. Furthermore, without a better understanding about how landscape fragmentation affects the biodiversity of terrestrial and aquatic tropical ecosystems and the services they provide, policies created to protect and restore them may be ineffective. On the other hand, the use of presently available scientific information to end unsustainable farming and the implementation of conservation strategies proposed by the Brazilian Forest Code could be a first step to guarantee that ethanol is produced more sustainably in Brazil. [ABSTRACT FROM AUTHOR]

Abstract: Sugarcane bagasse is the residue produced by mills after juice is extracted from sugarcane. Other important solid residues in the sugarcane-to-sugar-and-ethanol production chain are the leaves and tops of the stalks (together referred to as cane trash). Although it represents a significant portion of the energy in sugarcane, cane trash is currently left in the fields. This paper has described and analyzed how residues (bagasse and cane trash) are produced from sugarcane and their use as an energy source in the production of ethanol. Also, it presents a review of the physical properties and characteristics of bagasse and cane trash and estimate their energy potential. Bagasse and cane trash have similar fuel characteristics to other biomasses fuels. Special attention should be given to the characteristics of cane trash ash, which has higher fusibility and alkali levels than bagasse. A flowchart of a typical mill was described and the thermal and mechanical energy consumption at various stages of the production process was determined. Of the energy consumed as work, about 58% is accounted for by milling and juice extraction, and 33% by the generation of electricity for use in the plant. In a typical mill using steam generators operating at average pressure and temperature (22bar, 300–360°C), about 15% of the bagasse produced is surplus, and an average of 480kg of steam is used per tonne of cane processed. An energy consumption analysis revealed that there was significant scope for reducing the amount of steam needed to operate the turbines in mills because of the low isentropic efficiencies identified. Cane trash, which is not yet used for energy production, also shows great energy potential because it is produced in similar quantities to bagasse, and its calorific value is only slightly lower. [Copyright &y& Elsevier]

Abstract: Due to the high energy-importing dependence (98%) and tremendous greenhouse gases (GHGs) emission (over 13metric tons/capita-year), the diversification of kinds and sources of primary fuel like petroleum is making vital energy and environmental issues in Taiwan. In this regard, bioethanol fuel from energy crops has thus become attractive in this subtropical/tropical nation due to the rampant increase in oil price and governmental policies on promoting bioethanol as a potential substitute for gasoline fuel in recent years. The objective of this paper is to present an analysis of bioethanol fuel produced from sugar crops as one of the gasoline additives in the transportation sector of Taiwan. The analytical description in the manuscript is thus summarized on current energy supply and its future supply goal, and gasoline supply and consumption during the years of 1990–2005. It is emphasized that bioethanol was ever produced commercially from sugar manufacturing by-product (i.e., molasses) for more than 50 years in Taiwan. Concerning the promotion of bioethanol production, the description centered on new/revised promotion regulations/policies for the measures of agricultural sustainability, environmental protection, energy management, and financial incentives. Finally, we analyze the safety, health, and environmental risk of using bioethanol fuel, and also address its preliminary benefits on an industrial scale of 500,000kiloliters/year from a cane field of 100,000ha, showing a total energy output of 3.0×107 GJ/year and a CO2 mitigation of 7.5×105 metric tons/year. [Copyright &y& Elsevier]

This paper presents the potential of biogas from anaerobic digestion of vinasse and its impact in different contexts. The use of vinasse biogas (VBG) for power generation is evaluated and the potential of this energy source is compared with fossil oil power plants in terms of energy, costs and greenhouse gases (GHG) emissions in Brazil, suggesting a program where the most expensive oil power plants are replaced by biogas plants with benefits in all aspects. Secondly, the use of vinasse biomethane (VBM) to replace natural gas (NG) in the state of São Paulo is examined, presenting an incentive program that could make this alternative fuel feasible even in smaller scale plants with minimal impact on NG costs in this state, while providing considerable emission reduction. The impact of VBG considering the increase in ethanol production over the next ten years is also evaluated, showing that substantial additional energy can be obtained and larger amounts of fossil fuels can be replaced. By crossing vinasse biogas potential with selected fossil fuels demand, the article brings insights to help the transition to a low-carbon society in a novel approach. The conclusions are that VBG and VBM can provide great benefits, such as USD 1 billion/year cost reductions and 6.7 million tons CO 2e /year emissions avoided by replacing fossil oil by biogas in power generation in Brazil and 3.2 million tons CO 2e /year avoided with biomethane replacing natural gas in the state of São Paulo, which, with specific programs and policies, could be achieved. • Vinasse biogas could replace fossil oil and natural gas in Brazil. • Electricity from vinasse biogas avoid GHG emissions at lower costs than oil plants. • Vinasse biomethane can replace natural gas in São Paulo with minimal cost increase. • Vinasse biogas can substitute more fossil fuels with increased ethanol production. [ABSTRACT FROM AUTHOR]