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The Policy Objectives of a Biofuel Industry in Canada: An Assessment

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  • Danny G. Le Roy

    (Department of Economics, The University of Lethbridge, Lethbridge, AB, T1K 3M4, Canada)

  • Kurt K. Klein

    (Department of Economics, The University of Lethbridge, Lethbridge, AB, T1K 3M4, Canada)

Abstract

Canada has a huge stock of biomass resources, which provides a basis (and a temptation) for development of a major bio-fuels industry. Both federal and provincial governments have engaged in a wide array of subsidies, mandates, and other measures to stimulate production and consumption of biofuels. As a result, biofuels has become a growth industry in Canada with production of ethanol almost 10 times higher than it was ten years earlier. However, this has come at considerable cost to taxpayers. Increased biofuel production has resulted in minimal reduction in greenhouse gases, short run (but not long run) increases in net farm income (that benefited grain and oilseed producers but hurt livestock producers), large increases in the prices of farm land due to the higher grain and oilseed prices, and minimal impacts on rural economic diversification.

Suggested Citation

  • Danny G. Le Roy & Kurt K. Klein, 2012. "The Policy Objectives of a Biofuel Industry in Canada: An Assessment," Agriculture, MDPI, vol. 2(4), pages 1-16, December.
    • Handle: RePEc:gam:jagris:v:2:y:2012:i:4:p:436-451:d:22242
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    References listed on IDEAS

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    Cited by:

    1. Danilo Bertoni & Daniele Cavicchioli & Franco Donzelli & Giovanni Ferrazzi & Dario G. Frisio & Roberto Pretolani & Elena Claire Ricci & Vera Ventura, 2018. "Recent Contributions of Agricultural Economics Research in the Field of Sustainable Development," Agriculture, MDPI, vol. 8(12), pages 1-20, December.
    2. Sudip Das & V.S. Prakash Attili, 2022. "Data analysis of ethanol blended petrol programme of India," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2022(2), pages 171-191.
    3. Sudip Das, 2021. "A perspective of global biofuel policies," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2021(2), pages 45-75.
    4. Liu, Jiangui & Huffman, Ted & Green, Melodie, 2018. "Potential impacts of agricultural land use on soil cover in response to bioenergy production in Canada," Land Use Policy, Elsevier, vol. 75(C), pages 33-42.

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    Keywords

    biofuel; Canada; policy; economics;
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