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Ethanol and Biodiesel in Canada: Can They Help Meet Canada's Kyoto Commitment?

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Listed:
  • Klein, Kurt K.
  • Romain, Robert F.J.
  • Olar, Maria
  • Bergeron, Nancy

Abstract

The Canadian government ratified the Kyoto Protocol in December 2002. The protocol calls for greenhouse gas emissions to be reduced by 6 percent below the 1990 level (approximately 35 percent below what they are expected to be in a business-as-usual situation) by 2008–2012. To help meet this target, both federal and provincial governments in Canada have developed programs (in some cases mandates) for ethanol and biodiesel production and use in fuel blends. Various subsidy schemes have been designed to stimulate development of a biofuels industry in Canada. While the programs have been promoted on the basis of environmental concerns, a major driver has been the search for new markets for Canadian agricultural commodities that face chronically depressed prices. The purposes of this article are to review the current state of policies, programs and production of ethanol and biodiesel in Canada and to assess the prospect of these biofuels to significantly reduce production of greenhouse gases in Canada.

Suggested Citation

  • Klein, Kurt K. & Romain, Robert F.J. & Olar, Maria & Bergeron, Nancy, 2004. "Ethanol and Biodiesel in Canada: Can They Help Meet Canada's Kyoto Commitment?," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 05.
  • Handle: RePEc:ags:cafric:45988
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    File URL: http://purl.umn.edu/45988
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    References listed on IDEAS

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    1. Brian S. Freeze & T. Peters, 1999. "A Note on the Profitability of Wheat-ethanol-feedlot Production in Alberta," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(1), pages 67-78, March.
    2. Paul J. Thomassin & Laurie Baker, 2000. "Macroeconomic Impact of Establishing a Large-scale Fuel Ethanol Plant on the Canadian Economy," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 48(1), pages 67-85, March.
    3. Gustafson, Cole R., 2003. "Biodiesel: An Industry Poised for Growth?," Choices, Agricultural and Applied Economics Association, vol. 18(3).
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    Cited by:

    1. Viju, Crina & Kerr, William A., 2010. "Is The Subsidy For Biofuels The Way To Go?," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188117, International Consortium on Applied Bioeconomy Research (ICABR).

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    Keywords

    Agricultural and Food Policy;

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