2
from poaceous feed crops such as paddy and sorghums (The Japan Institute of
Energy 2009 and Ohijiri 2004). Currently used first-generation bio-diesel is produced from animal oil and fat such as beef fat and lard, as well as vegetable oil such
as Elaeis guineensis (for palm oil), crucifer (for canola oil), soybean (soybean oil)
and sunflower (sunflower oil) (The Japan Institute of Energy 2009 and Matsumura
2006).
One of the reasons for introducing biofuels worldwide is its features.
Carbon Neutral The Kyoto protocol treats biofuels as carbon neutral because CO 2
emission for biofuel combustion is balanced out by absorbed CO 2 during growth of
the plants for biofuel. In other words, while CO 2 , one of the global greenhouse gasses (GHG), is emitted by fossil fuel burning, the Kyoto protocol views CO 2 emission as absent when biofuel is burned. We hypothesize that utilizing biofuels is a
countermeasure against global warming. The most important reason for introducing
biofuels is this carbon-neutral character in principle.
Renewable Energy According to the definition of renewable energy by the National
Renewable Energy Laboratory, renewable energy is a non-exhaustible resource
similar to wind and solar power (National Renewable Energy Laboratory 2008).
Biofuel is thought to be a renewable energy because it is from plants and is not
exhausted unless retarding the growth of the plants.
Prevention of Air Pollution An incomplete combustion of gasoline is inhibited by
the addition of ethanol, which contains oxygen. Oxygenated gasoline by adding
biofuels or bioethanol into gasoline reduces carbon monoxide emission. According
to the IEA (International Energy Agency), not only carbon monoxide emission but
also carbon hydride and particulate matter are reduced by adding bioethanol to gasoline. The US EPA (Environmental Protection Agency) reports that emissions of
carbon monoxide, carbon hydride and particulate matter are reduced, although
nitrogen oxide emissions are reduced by adding bioethanol to gasoline.
Contribution to Energy Security The production of biofuel from plants grown in a
country may contribute to energy security in that country. In addition, producing
biofuel can reduce the geopolitical risk of energy because of its even distribution,
whereas fossil fuel often has high risk.
Development of Agriculture and Rural Areas Increasing agricultural profit, generating job opportunities in the agricultural sector and exporting agricultural production in developing countries are expected by biofuel production (Koizumi 2007;
Hisano 2008).
These factors induce many countries and regions to focus on introducing biofuel
production. In addition, a rapid increase in crude oil prices is also one of the major
reasons for introducing biofuel production in many nations and regions. A decrease
in the relative price of biofuel compared to the crude oil price as a substitute good
leads to an increase in demand for it.
H. Matsuda and K. Takeuchi
from poaceous feed crops such as paddy and sorghums (The Japan Institute of
Energy 2009 and Ohijiri 2004). Currently used first-generation bio-diesel is produced from animal oil and fat such as beef fat and lard, as well as vegetable oil such
as Elaeis guineensis (for palm oil), crucifer (for canola oil), soybean (soybean oil)
and sunflower (sunflower oil) (The Japan Institute of Energy 2009 and Matsumura
2006).
One of the reasons for introducing biofuels worldwide is its features.
Carbon Neutral The Kyoto protocol treats biofuels as carbon neutral because CO 2
emission for biofuel combustion is balanced out by absorbed CO 2 during growth of
the plants for biofuel. In other words, while CO 2 , one of the global greenhouse gasses (GHG), is emitted by fossil fuel burning, the Kyoto protocol views CO 2 emission as absent when biofuel is burned. We hypothesize that utilizing biofuels is a
countermeasure against global warming. The most important reason for introducing
biofuels is this carbon-neutral character in principle.
Renewable Energy According to the definition of renewable energy by the National
Renewable Energy Laboratory, renewable energy is a non-exhaustible resource
similar to wind and solar power (National Renewable Energy Laboratory 2008).
Biofuel is thought to be a renewable energy because it is from plants and is not
exhausted unless retarding the growth of the plants.
Prevention of Air Pollution An incomplete combustion of gasoline is inhibited by
the addition of ethanol, which contains oxygen. Oxygenated gasoline by adding
biofuels or bioethanol into gasoline reduces carbon monoxide emission. According
to the IEA (International Energy Agency), not only carbon monoxide emission but
also carbon hydride and particulate matter are reduced by adding bioethanol to gasoline. The US EPA (Environmental Protection Agency) reports that emissions of
carbon monoxide, carbon hydride and particulate matter are reduced, although
nitrogen oxide emissions are reduced by adding bioethanol to gasoline.
Contribution to Energy Security The production of biofuel from plants grown in a
country may contribute to energy security in that country. In addition, producing
biofuel can reduce the geopolitical risk of energy because of its even distribution,
whereas fossil fuel often has high risk.
Development of Agriculture and Rural Areas Increasing agricultural profit, generating job opportunities in the agricultural sector and exporting agricultural production in developing countries are expected by biofuel production (Koizumi 2007;
Hisano 2008).
These factors induce many countries and regions to focus on introducing biofuel
production. In addition, a rapid increase in crude oil prices is also one of the major
reasons for introducing biofuel production in many nations and regions. A decrease
in the relative price of biofuel compared to the crude oil price as a substitute good
leads to an increase in demand for it.
H. Matsuda and K. Takeuchi