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Issues relating to biofuel are social, economic, environmental and technical problems that may arise from biofuel production and use. Social and economic issues include the "food vs fuel" debate and the need to develop responsible policies and economic instruments to ensure sustainable biofuel production. Farming for biofuels feedstock can be detrimental to the environment if not done sustainably. Environmental concerns include deforestation, biodiversity loss and soil erosion as a result of land clearing for biofuels agriculture. While biofuels can contribute to reduction in global carbon emissions, indirect land use change for biofuel production can have the inverse effect. Technical issues include possible modifications necessary to run the engine on biofuel, as well as energy balance and efficiency.
The International Resource Panel outlined the wider and interrelated factors that need to be considered when deciding on the relative merits of pursuing one biofuel over another.[1] The IRP concluded that not all biofuels perform equally in terms of their effect on climate, energy security and ecosystems, and suggested that environmental and social effects need to be assessed throughout the entire life-cycle.