Answer:
The following are the factors, which should be taken into account while evaluating a biofuel include:
a. Net energy balance
b. Should not compete with the production of food
c. Economic viability
d. Energy balance ratio
e. Should be neutral or carbon negative
The first generation biofuel is generated from sugarcane, which produces ethanol, and this eventually results in the elevation of grain prices. There was a controversy regarding the generation of raw material for its application as food or fuel.
Thus, it should not be competition with the production of food. The bio-fuels are generated with an objective to provide environment of zero carbon emission, that is, should be neutral or carbon negative, and at the same time it should be of low cost in production.