This year, the federal government requires that more than 10% of diesel used in the US be biofuel. To meet this requirement, Americans will have to use almost 7 billion gallons of biomass-based diesel (BBD), up from 4.3 billion gallons in 2025. Unlike corn-based fuels such as E85, most BBD is made from vegetable oils such as soybean or palm. The BBD mandate stems from the Renewable Fuel Standard, a 2007 law that requires some gasoline and diesel to be replaced with biofuels.
In a recent research paper, Tzu-Hui Chen, Rich Sexton, and I find that using vegetable oils to make biofuel has generated more carbon emissions than regular diesel because it caused deforestation. In this blog, I propose a way to mandate biofuels without causing deforestation, although implementation would face practical and political barriers.