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Considerable effort and money are devoted to developing alternative energy sources, such as wind power, solar power, cellulosic ethanol, and biofuels. This ebook is a collection of research papers on alternative energy sources presented at the Economics of Alternative Energy Sources and Globalization: The Road Ahead Conference that was held in November 2009 in Orlando, Florida. Thirty-three papers were presented by leading experts in the field, with about half being published in the e-book. Several of the papers explored the economics of biofuels produced from corn, sugarcane, and/or forestry materials. Two of the papers addressed the link between biofuel production and U.S. agricultural policy, and how biofuels could reduce U.S. Treasury costs even though biofuels increase food prices. International subsidies promote alternative fuel production (e.g., Brazil). This ebook should be a very useful resource for readers interested in alternative energy research and related economic policy.

This chapter examines the impact of expanding biofuels production and use on agricultural commodity markets. It also examines the continued biofuels expansion under declining energy prices. The analysis uses a Partial Equilibrium Agricultural Trade Simulation (PEATSim) model, a dynamic multi-commodity, multi-country global trade model of the agriculture sector to analyze the interaction between biofuel, crop, and livestock sectors. The ability of countries to achieve their energy goals will be affected by future direction of petroleum prices. A 30% decline in petroleum prices (absent of mandates) would result in rapid decline in biofuel use worldwide accompanied by a decline in feedstock and biofuel prices.