Alic, John A

Abstract
The case for public investment in biofuels hinges on reductions in carbon dioxide emissions from transportation, a major cause of global warming. Yet the long-term sustainability of such fuels remains undetermined, in part because of lagging innovation. The US Department of Defense (DoD) seeks to hasten innovation in drop-in synthetics, chemically indistinguishable from petroleum fuels, by holding out the prospect of volume purchases of biokerosene. DoD’s procurement-centered approach contrasts with that of the US Department of Energy, which has been mostly content to fund undirected research. DoD justifies its policy on the basis of energy security and high and volatile oil prices—weak rationales both. Nonetheless, a number of policy pieces are in place and will probably remain. The overall thrust could be strengthened by increasing incentives for drop-in synthetics and making explicit provision for assessment of long-term sustainability based on actual operating experience.
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