Yes, if we’re talking about local or intercity buses might get to be the greenest public transportation system if powered by biofuel. Currently trains are more efficient, they get around 12 mpg, while buses average around 7 mpg. Trains get use 1.8 Megajoules per passenger-kilometre, buses 2.7 (lower is better). So buses have a long way to go to be more economical but seeing how fast biofuels are developing by the time we start implementing them on a large scale they might be the greenest way to go.
It really depends on how the biofuels are made and where the public transportation is. Ethanol, for example, made from corn in the Midwest just barely creates more energy than it uses; and if current agricultural practices are maintained to grow the feedstock, it will continue to drawdown aquifers, deplete topsoil and contribute to the growing Dead Zone in the Gulf of Mexico. However, in more tropical countries where the growing season is longer and the feedstock is better, biofuels such as ethanol have a greater energy output to energy input ratio (though this still doesn’t get around the destructive agricultural practices). Corn ethanol in the U.S. has a energy balance of 1.3, while sugarcane ethanol in Brazil has an energy balance of 8.
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