A report from the Organization for Economic Cooperation and Development (OECD) discusses the production potential, cost/benefits and environmental impacts of production biofuels (bioethanol/biodiesel) as an alternative transport fuel.

In many countries, biofuels are currently derived from starchy materials like corn and wheat for ethanol, and soy and rape for biodiesel. However, its worldwide used as a transport fuel remains low. Nevertheless, in Brazil, it accounts to about 30% of motor fuel demand. The high cost of biofuels (about 3 times that of petrol) has kept its usage down in many countries; but with technical improvements and increasing production volume, biofuel prices would likely drop. Other non-easily quantifiable benefits are energy security, significant reduction in greenhouse gases (and other pollutant emission) and enhanced rural development.

The report further mentions that although there is a need to better quantify the cost/benefit aspects of biofuels, there is sufficient evidence that it could at least complement existing transport fuels, or better, become a serious alternative to conventional fuels..