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Impact of policies and subsidies in agribusiness: The case of oil palm and biofuels in Colombia

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  • Castiblanco, Carmenza
  • Moreno, Alvaro
  • Etter, Andrés

Abstract

We analyze the economic impacts of policies supporting biodiesel production in Colombia, such as subsidies and mandates for compulsory fuel mixtures. In the major biodiesel source being palm oil, we seek to establish the impact of these policies on oil palm producer incomes, prices and production levels of crude palm oil (CPO) and biodiesel, as well as the impacts on demand for land for oil palm plantation expansion.

Suggested Citation

  • Castiblanco, Carmenza & Moreno, Alvaro & Etter, Andrés, 2015. "Impact of policies and subsidies in agribusiness: The case of oil palm and biofuels in Colombia," Energy Economics, Elsevier, vol. 49(C), pages 676-686.
    • Handle: RePEc:eee:eneeco:v:49:y:2015:i:c:p:676-686
    DOI: 10.1016/j.eneco.2015.02.025
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    3. Xing Yu & Wei-Guo Zhang & Yong-Jun Liu, 2019. "Coordination Mechanism for Contract Farming Supply Chain with Government Option Premium Subsidies," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(05), pages 1-27, October.
    4. Halimatussadiah, A. & Nainggolan, D. & Yui, S. & Moeis, F.R. & Siregar, A.A., 2021. "Progressive biodiesel policy in Indonesia: Does the Government's economic proposition hold?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    5. Szulczyk, Kenneth R. & Badeeb, Ramez Abubakr, 2022. "Nontraditional sources for biodiesel production in Malaysia: The economic evaluation of hemp, jatropha, and kenaf biodiesel," Renewable Energy, Elsevier, vol. 192(C), pages 759-768.
    6. Szulczyk, Kenneth R. & Tan, Yeng-May, 2022. "Economic feasibility and sustainability of commercial bioethanol from microalgal biomass: The case of Malaysia," Energy, Elsevier, vol. 253(C).
    7. Gonzalez-Salazar, Miguel Angel & Venturini, Mauro & Poganietz, Witold-Roger & Finkenrath, Matthias & L.V. Leal, Manoel Regis, 2017. "Combining an accelerated deployment of bioenergy and land use strategies: Review and insights for a post-conflict scenario in Colombia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 159-177.
    8. Palacio-Ciro, Santiago & Vasco-Correa, Carlos Andrés, 2020. "Biofuels policy in Colombia: A reconfiguration to the sugar and palm sectors?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    9. dos Santos Alves, Camila Elisa & Belarmino, Luiz Clovis & Padula, Antonio Domingos, 2017. "Feedstock diversification for biodiesel production in Brazil: Using the Policy Analysis Matrix (PAM) to evaluate the impact of the PNPB and the economic competitiveness of alternative oilseeds," Energy Policy, Elsevier, vol. 109(C), pages 297-309.
    10. Naylor, Rosamond L. & Higgins, Matthew M., 2017. "The political economy of biodiesel in an era of low oil prices," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 695-705.
    11. Alexandre Gohin & Fabrice Levert & Agneta Forslund, 2017. "The EU-Argentinean trade dispute on biodiesel: an economic assesment," Post-Print hal-01532702, HAL.
    12. Szulczyk, Kenneth R. & Ziaei, Sayyed Mahdi & Zhang, Changyong, 2021. "Environmental ramifications and economic viability of bioethanol production in Malaysia," Renewable Energy, Elsevier, vol. 172(C), pages 780-788.

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    More about this item

    Keywords

    Subsidies for biodiesel; Blending mandates; Oil palm; Tax payers; Social cost;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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