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Policies for Second Generation Biofuels: Current status and future challenges

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Author Info

  • 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?

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File URL: http://hdl.handle.net/2077/25502
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 501.

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Length: 29 pages
Date of creation: 18 May 2011
Date of revision:
Handle: RePEc:hhs:gunwpe:0501

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research

Keywords: Biofuels; cellulosic ethanol; Second-generation; Subsidies; Trade policies;

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References

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  1. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
  2. Gurgel Angelo & Reilly John M & Paltsev Sergey, 2007. "Potential Land Use Implications of a Global Biofuels Industry," Journal of Agricultural & Food Industrial Organization, De Gruyter, De Gruyter, vol. 5(2), pages 1-36, December.
  3. Hochman Gal & Sexton Steven E & Zilberman David D, 2008. "The Economics of Biofuel Policy and Biotechnology," Journal of Agricultural & Food Industrial Organization, De Gruyter, De Gruyter, vol. 6(2), pages 1-24, December.
  4. Bronwyn H. Hall, 2002. "The Financing of Research and Development," NBER Working Papers 8773, National Bureau of Economic Research, Inc.
  5. Carriquiry, Miguel A. & Du, Xiaodong & Timilsina, Govinda R, 2010. "Second-generation biofuels : economics and policies," Policy Research Working Paper Series 5406, The World Bank.
  6. Fischer, Carolyn & Newell, Richard, 2004. "Environmental and Technology Policies for Climate Mitigation," Discussion Papers, Resources For the Future dp-04-05, Resources For the Future.
  7. Deepak Rajagopal & Steve Sexton & Gal Hochman & David Zilberman, 2009. "Recent Developments in Renewable Technologies: R&D Investment in Advanced Biofuels," Annual Review of Resource Economics, Annual Reviews, Annual Reviews, vol. 1(1), pages 621-644, 09.
  8. A. M. Spence, 1981. "The Learning Curve and Competition," Bell Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 12(1), pages 49-70, Spring.
  9. Greaker Mads & Heggedal Tom-Reiel, 2010. "Lock-In and the Transition to Hydrogen Cars: Should Governments Intervene?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-30, May.
  10. Coyle, William T., 2010. "Next-Generation Biofuels: Near-Term Challenges and Implications for Agriculture," Amber Waves, United States Department of Agriculture, Economic Research Service, United States Department of Agriculture, Economic Research Service, June.
  11. Bushnell, James & Peterman, Carla & Wolfram, Catherine, 2008. "Local Solutions to Global Problems: Climate Change Policies and Regulatory Jurisdiction," Staff General Research Papers 13125, Iowa State University, Department of Economics.
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Cited by:
  1. Mads Greaker & Michael Hoel & Knut Einar Rosendahl, 2012. "Does a Renewable Fuel Standard for Biofuels Reduce Climate Costs?," CESifo Working Paper Series 4030, CESifo Group Munich.
  2. Geir H. Bjertnæs, 2013. "Biofuel mandate versus favourable taxation of electric cars. The case of Norway," Discussion Papers, Research Department of Statistics Norway 745, Research Department of Statistics Norway.

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