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Subsidies: The Distorted Economics of Biofuels

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  • Ronald Steenblik

    (International Institute for Sustainable Development)

Abstract

Governments have influenced the development of bioenergy, particularly liquid biofuels (ethanol, biodiesel and pure plant oil used as a fuel), for several decades. This paper discusses the economics of biofuels and provides an overview of current policy measures to support their production and consumption. It discusses also how the different policies supportive of biofuels interact with broader agricultural, energy, environmental and transport policies, and the relative effectiveness of biofuels in achieving objectives in these areas. The paper concludes with several recommendations on further research.

Suggested Citation

  • Ronald Steenblik, 2007. "Subsidies: The Distorted Economics of Biofuels," OECD/ITF Joint Transport Research Centre Discussion Papers 2007/3, OECD Publishing.
    • Handle: RePEc:oec:itfaaa:2007/3-en
    DOI: 10.1787/235088686758
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    Cited by:

    1. Junginger, Martin & van Dam, Jinke & Zarrilli, Simonetta & Ali Mohamed, Fatin & Marchal, Didier & Faaij, Andre, 2011. "Opportunities and barriers for international bioenergy trade," Energy Policy, Elsevier, vol. 39(4), pages 2028-2042, April.
    2. Sivashankar, Pathmanathan & Weerahewa, Jeevika & Pushpakumara, Gamini & Galagedara, Lakshman, 2016. "An estimation of the willingness to pay for biodiesel: a pilot study of diesel consumers," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(1), pages 1-19, April.
    3. Ghatak, Himadri Roy, 2011. "Biorefineries from the perspective of sustainability: Feedstocks, products, and processes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 4042-4052.

    More about this item

    Keywords

    biofuels; subsidies;

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