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Over the past decade, biofuels production in the European Union and the United States has boomed – much of this due to government mandates and subsidies. The United States has now surpassed Brazil as the world's leading producer of ethanol. The economic and environmental impact of these biofuel programs has become an important question of public policy. Due to the complex intersectoral linkages between biofuels and crops, livestock as well as energy activities, CGE modeling has become an important tool for their analysis. This chapter reviews recent developments in this area of economic analysis and suggests directions for future research.

Biosolids, the residual solids from wastewater treatment operations and once considered a waste product by the industry, are now becoming increasingly recognised as a multifunctional resource with growing opportunities for marketable use. This shift in attitude towards biosolids management is spurred on by increasing volatility in energy, fertilizer and commodity markets as well as moves by the global community towards mitigating global warming and the effects of climate change. This chapter will provide an overview of current global biosolids practices (paired with a number of Australian examples) as well as discuss potential future uses of biosolids. Additionally, present and future risks and opportunities of biosolids use are highlighted, including potential policy implications.

In the United States, successive farm bills and the 2007 Renewable Fuels Standard (RFS) have largely defined domestic subsidy and conservation programs and U.S. food-aid initiatives over the past decade. This chapter examines the effects of the current mixture of U.S. agricultural policies and international food-aid programs on domestic and global food-insecure populations. A detailed research-based examination is carried out with respect to the impacts of U.S. subsidy programs on agricultural production, domestic and global agricultural commodity prices, and their implications for food-insecure populations. The impacts of the RFS are assessed along with the effects of current and potentially reformed U.S. international food-aid programs.

This study concludes that current U.S. agricultural subsidy programs have small or negligible impacts on the aggregate level and mixture of U.S. agricultural output, U.S. domestic prices and global prices, and domestic and global food insecurity among poor households. The RFS has increased prices for food and feed grain and oilseeds with adverse implications for the urban poor in developing countries and some poor U.S. households. The portfolios of U.S. food-aid programs are managed inefficiently because of congressional mandates designed to aid special interest groups that waste 30% of the current budget. While U.S. subsidy programs likely should be moderated for other reasons, they have few impacts on domestic and globally food-insecure households. However, in relation to global and domestic food insecurity, the RFS should be discontinued and major reforms to U.S. international food aid implemented.