Environmental Valuation & Cost-Benefit News
Promoting biofuels: Implications for developing countries
03/13/08
11:30:00 am, by damageva 
, 189 words, 184 views 
Categories: Energy, Europe, Africa, Academic Study/Journal Article, Agriculture, Forestry and Food, India, Costs and Benefits
Promoting biofuels: Implications for developing countries
Abstract: Interest in biofuels is growing worldwide as concerns about the security of energy supply and climate change are moving into the focus of policy makers. With the exception of bioethanol from Brazil, however, production costs of biofuels are typically much higher than those of fossil fuels. As a result, promotion measures such as tax exemptions or blending quotas are indispensable for ascertaining substantial biofuel demand. With particular focus on developing countries, this paper discusses the economic justification of biofuel promotion instruments and investigates their implications. Based on data from India and Tanzania, we find that substantial biofuel usage induces significant financial costs. Furthermore, acreage availability is a binding natural limitation that could also lead to conflicts with food production. Yet, if carefully implemented under the appropriate conditions, biofuel programs might present opportunities for certain developing countries.
Keywords: Renewable energy; Environmental policy; Economic development
by Jörg Peters and Sascha Thielmann; Division “Environment and Resources”, Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI Essen), Hohenzollernstr. 1-3, 45128 Essen, Germany; Tel.: +49 201 8149 247; fax: +49 201 8149 200.
Energy Policy via Elsevier Science Direct www.ScienceDirect.com
Volume 36, Issue 4; April, 2008; Pages 1538-1544
http://dx.doi.org/10.1016/j.enpol.2008.01.013
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