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Second-generation biofuels : economics and policies

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Author Info

  • Carriquiry, Miguel A.
  • Du, Xiaodong
  • Timilsina, Govinda R

Abstract

Recent increases in production of crop-based (or first-generation) biofuels have engendered increasing concerns over potential conflicts with food supplies and land protection, as well as disputes over greenhouse gas reductions. This has heightened a sense of urgency around the development of biofuels produced from non-food biomass (second-generation biofuels). This study reviews the economic potential and environmental implications of production of second-generation biofuels from a variety of various feedstocks. Although second-generation biofuels could significantly contribute to the future energy supply mix, cost is a major barrier to increasing commercial production in the near to medium term. Depending on various factors, the cost of second-generation (cellulosic) ethanol can be two to three times as high as the current price of gasoline on an energy equivalent basis. The cost of biodiesel produced from microalgae, a prospective feedstock, is many times higher than the current price of diesel. Policy instruments for increasing biofuels use, such as fiscal incentives, should be based on the relative merits of different types of biofuels.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5406.

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Date of creation: 01 Aug 2010
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Handle: RePEc:wbk:wbrwps:5406

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Keywords: Energy Production and Transportation; Renewable Energy; Climate Change Mitigation and Green House Gases; Crops&Crop Management Systems; Transport Economics Policy&Planning;

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References

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  2. Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
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Citations

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Cited by:
  1. Janda, Karel & Kristoufek, Ladislav & Zilberman, David, 2011. "Biofuels: review of policies and impacts," CUDARE Working Paper Series 1119, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  2. Kamal Soundararajan & Elspeth Thomson, 2013. "Asia and European transport biofuels stalled at the same place?," Asia Europe Journal, Springer, vol. 11(3), pages 247-263, September.
  3. Moschini, GianCarlo & Cui, Jingbo & Lapan, Harvey, 2012. "Economics of Biofuels: An Overview of Policies, Impacts and Prospects," Staff General Research Papers 35548, Iowa State University, Department of Economics.
  4. Adenle, Ademola A. & Haslam, Gareth E. & Lee, Lisa, 2013. "Global assessment of research and development for algae biofuel production and its potential role for sustainable development in developing countries," Energy Policy, Elsevier, vol. 61(C), pages 182-195.
  5. Hakan Eggert & Mads Greaker, 2014. "Promoting Second Generation Biofuels: Does the First Generation Pave the Road?," Energies, MDPI, Open Access Journal, vol. 7(7), pages 4430-4445, July.
  6. 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.
  7. Loureiro, Maria L. & Labandeira, Xavier & Hanemann, Michael, 2013. "Transport and low-carbon fuel: A study of public preferences in Spain," Energy Economics, Elsevier, vol. 40(S1), pages S126-S133.
  8. Valeria Costantini & Francesco Crespi & Ylenia Curci, 2014. "A keyword selection method for mapping technological knowledge in specific sectors through patent data:the case of biofuels sector," SEEDS Working Papers 1714, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jun 2014.
  9. Eggert, Håkan & Greaker, Mads, 2013. "Promoting Second Generation Biofuels: Does the First Generation Pave the Road?," Discussion Papers dp-13-18-efd, Resources For the Future.
  10. Osmani, Atif & Zhang, Jun, 2014. "Economic and environmental optimization of a large scale sustainable dual feedstock lignocellulosic-based bioethanol supply chain in a stochastic environment," Applied Energy, Elsevier, vol. 114(C), pages 572-587.

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