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Biofuels: review of policies and impacts

  • Janda, Karel

    ()

    (University of California, Berkeley, Charles University, Prague, University of Economics, Prague and CERGE-EI)

  • Kristoufek, Ladislav

    ()

    (Charles University, Prague and Institute of Information Theory and Automation, Academy of Sciences of the Czech Republic)

  • Zilberman, David

    ()

    (University of California, Berkeley. Dept of agricultural and resource economics)

This paper provides an overview of the environmental, economical, and policy considerations related to biofuels. While the biofuel production and consumption exhibited significant increase over the first decade of the new millennium, this and further increases in biofuel production are driven primarily by government policies. Currently available first generation biofuels are with a few exceptions not economically viable in the absence of fiscal incentives or high oil prices. Also the environmental impacts of biofuels as an alternative to fossil fuels are quite ambiguous. The review of the most recent economic models dealing with biofuels and their economic impacts provides a distinction between structural and reduced form models. The review ofreduced models is structured toward the time series analysis approach to thedependencies between prices of feedstock, biofuels, and fossil fuels.

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Paper provided by University of California at Berkeley, Department of Agricultural and Resource Economics and Policy in its series CUDARE Working Paper Series with number 1119.

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Length: 34 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:are:cudare:1119
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