Domestically produced biofuels could go a long way toward closing the gap between supply and demand. In addition, with a reduced need to import oil, more money can be spent on domestically produced fuel, stimulating economic growth. Biofuels can reduce the greenhouse effect. This is because the CO2 released during biofuels production and combustion is recycled back as a nutrient to the crops that are used to produce biofuels.
Motor vehicles account for at least half of all air pollution in the United States.
Biofuels, used as gasoline blends or as neat fuels, can reduce this source of pollution. Most automobile pollutants come from partially burned gasoline emitted from the tailpipe. CO is harmful if inhaled in high amounts, especially to those with lung or heart problems. Because of their high octane levels, oxygenates can be used in gasoline as substitutes for aromatics, many of which are toxic. Benzene, for example, is an aromatic typically used in gasoline to increase octane, but is a known carcinogen and can be replaced with biofuels or biofuel derivatives.