Do political economy factors matter in explaining the increase in the production of bioenergy?
In this paper, we analyse the impact of political economy factors on the production of bioenergy. We theoretically and empirically show that the quality of governance and environmental policy stringency instruments promote the development of bioenergy production. We also find that the factors that favour oil production and renewable energy negatively influence the development of bioenergy, whereas the conditions of production (cereal yield) and demand factors (gross domestic product, population density, and urbanization) tend to favour the production of bioenergy.
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