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Policies for Second Generation Biofuels: Current status and future challenges

Author

Listed:
  • Eggert, Håkan

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Greaker, Mads

    (Statistics Norway)

  • Potter, Emily

    (Statistics Norway)

Abstract

This report reviews the current status of second generation biofuels. First generation biofuels continue to be substantially subsidized, and this has contributed to the increasing use of such fuel. However, recent studies claim that the future of biofuels lies in second generation biofuels, in particular biochemical ethanol made from cellulose. Thus, in this report we ask the following three questions: How far is second generation biofuels from being a competitive GHG abatement technology? Is it likely that first generation biofuels will bridge the development of second generation biofuels? Should trade policy be used to protect domestic infant second generation biofuels industry from import of low cost first generation biofuels from developing countries?

Suggested Citation

  • Eggert, Håkan & Greaker, Mads & Potter, Emily, 2011. "Policies for Second Generation Biofuels: Current status and future challenges," Working Papers in Economics 501, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0501
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    File URL: http://hdl.handle.net/2077/25502
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    1. Mads Greaker & Michael Hoel & Knut Einar Rosendahl, 2014. "Does a Renewable Fuel Standard for Biofuels Reduce Climate Costs?," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 1(3), pages 337-363.
    2. Geir H. Bjertnæs, 2013. "Biofuel mandate versus favourable taxation of electric cars. The case of Norway," Discussion Papers 745, Statistics Norway, Research Department.

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    More about this item

    Keywords

    Biofuels; cellulosic ethanol; Second-generation; Subsidies; Trade policies;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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