The aim of this article is to present the environmental and economic aspects of the production and use of liquid biofuels of the first generation. To this end it was made analysis of literature. Based on the analysis, it was found that the use of liquid biofuels of the first generation speak both economic aspects (sense of energy security, rural development, increase agricultural income, job creation) and environmental (reduction of extraction of non-renewable resources, reduction of emissions). Unfortunately, you must also take into account the negative economic aspects („land hunger”, the increase in prices of agricultural commodities and food, impoverishment of the population) and ecological (questionable environmental protection, increase the greenhouse effect, monoculture crops, low calorific value) the production and use of liquid biofuels of the first generation.