Politically controlled supply and limited availability of non-renewable energy sources have prompted many nations to seek alternate renewable energy sources. Clean, renewable biofuels are environmentally friendly and contribute to sustainable growth and energy security. Countries should take extreme care in implementing biofuel policies because more pollution may occur and resources may be misallocated when subsidies are provided and sectors are protected.

What are the advantages and disadvantages of biofuels, in terms of addressing the challenge of sustainable development? Should bioethanol production from corn be encouraged, given that corn is used as a basic cereal in many societies? Should bioethanol production be subsidized in the United States, and also be protected against competition from Brazil sugarcane-based bioethanol?