Global bioenergy production could help reduce emissions under a climate policy. By setting a price on carbon dioxide emissions, the market for biomass energy becomes more favorable. This could lead to a significant increase in non-traditional bioenergy production by 2050. Lignocellulosic ethanol may become a major form of bioenergy if production costs decrease as predicted. However, if costs remain high, first-generation biofuels like ethanol from sugarcane and corn may continue to be used. Deforestation could occur if emissions from land-use change are not priced, but using biomass residues and improving crop yields could help mitigate this. The combination of a carbon price and bioenergy production may increase food prices slightly.