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Sustainability standards for bioenergy--A means to reduce climate change risks?

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  • Schubert, Renate
  • Blasch, Julia

Abstract

The paper discusses the importance of standards for sustainable bioenergy production. Sustainability of bioenergy production is crucial if bioenergy is supposed to contribute effectively to climate change mitigation. First, a brief overview of current bioenergy policies and of initiatives and legislation for bioenergy sustainability are given. Then, the authors show that under free market conditions undersupply of sustainable bioenergy will prevail. Two types of market failures are identified: information asymmetry and externalities in bioenergy production. Due to these market failures bioenergy is less sustainable than it could be. It is shown that mandatory certification and subsequent labeling can help to overcome the information asymmetry and lead to a more efficient market outcome since consumers can choose products according to their preferences. The authors conclude, however, that the existence of production externalities asks for stronger market intervention, for example in the form of binding minimum standards or taxes. The paper discusses the efficiency and feasibility of such policy measures and shows that mandatory certification combined with binding minimum standards can be an adequate policy choice to regulate the bioenergy market.

Suggested Citation

  • Schubert, Renate & Blasch, Julia, 2010. "Sustainability standards for bioenergy--A means to reduce climate change risks?," Energy Policy, Elsevier, vol. 38(6), pages 2797-2805, June.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:6:p:2797-2805
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    Cited by:

    1. Ackom, Emmanuel K. & Alemagi, Dieudonne & Ackom, Nana B. & Minang, Peter A. & Tchoundjeu, Zac, 2013. "Modern bioenergy from agricultural and forestry residues in Cameroon: Potential, challenges and the way forward," Energy Policy, Elsevier, vol. 63(C), pages 101-113.
    2. Chen, Lihong & Li, Xiaobing & Wen, Wanyu & Jia, Jingdun & Li, Guoqing & Deng, Fei, 2012. "The status, predicament and countermeasures of biomass secondary energy production in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 6212-6219.
    3. Segerstedt, Anna & Bobert, Jans, 2013. "Revising the potential of large-scale Jatropha oil production in Tanzania: An economic land evaluation assessment," Energy Policy, Elsevier, vol. 57(C), pages 491-505.
    4. Purkus, Alexandra & Gawel, Erik & Thrän, Daniela, 2012. "Bioenergy governance between market and government failures: A new institutional economics perspective," UFZ Discussion Papers 13/2012, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    5. Pradipta Halder & Javier Arevalo & Liisa Tahvanainen & Paavo Pelkonen, 2014. "Benefits and Challenges Associated with the Development of Forest-Based Bioenergy Projects in India: Results from an Expert Survey," Challenges, MDPI, Open Access Journal, vol. 5(1), pages 1-12, March.
    6. Halder, Pradipta, 2014. "Perceptions of energy production from forest biomass among school students in Finland: Directions for the future bioenergy policies," Renewable Energy, Elsevier, vol. 68(C), pages 372-377.
    7. Carsten Herbes & Lorenz Braun & Dennis Rube, 2016. "Pricing of Biomethane Products Targeted at Private Households in Germany—Product Attributes and Providers’ Pricing Strategies," Energies, MDPI, Open Access Journal, vol. 9(4), pages 1-15, March.
    8. Meneses-Jácome, Alexander & Diaz-Chavez, Rocío & Velásquez-Arredondo, Héctor I. & Cárdenas-Chávez, Diana L. & Parra, Roberto & Ruiz-Colorado, Angela A., 2016. "Sustainable Energy from agro-industrial wastewaters in Latin-America," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 1249-1262.
    9. repec:gam:jeners:v:9:y:2016:i:4:p:252:d:66797 is not listed on IDEAS

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    Keywords

    Bioenergy Sustainability Standards;

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