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Abstract

There is growing interest in agriculture as a source of bio-fuels to replace petroleum-based transportation fuels. Ethanol production has more than doubled from 2000 to 2005 but still accounts for less than two percent of the world's transportation petrol supply. The future role of bio-fuels will be determined by continuation of high oil prices, availability of low cost feed stocks and favorable government policy. Possible government strategies include a strong policy commitment to reduce investment risk in the biofuel sector, public support for commercializing second generation biofuel, and accounting for country-specific agricultural and economic realities.

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