"This paper provides an overview of the main risks and opportunities that may arise from liquid biofuel production and use in developing countries. Both the potential environmental impacts and the socio-economic effects of liquid biofuel production and use are discussed, focusing, in particular, on the household-level implications. A few country-levels impacts, which might trickle down to the household level, are discussed as well. Recommendations on how to minimize the risks and maximize the opportunities of liquid biofuel production and use are provided in the final section of the paper".