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Stagnating Jatropha Biofuel Development in Southwest China: An Institutional Approach

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  • Li, Jia
  • Bluemling, Bettina
  • Mol, Arthur P. J.
  • Herzfeld, Thomas

Abstract

Biodiesel from jatropha has been considered as a promising alternative to fossil fuels for some time. Consequently, China started promoting jatropha as one of the options to meet its ever-increasing energy consumption, and the Chinese biodiesel industry also gained interest. However, the excitement of the biofuel industry in jatropha faded after it did not bring about the expected results. This article investigates the stagnation in jatropha development and production for biodiesel in China, using two detailed case studies of jatropha biofuel production in southeast China. It is found that the underdeveloped biodiesel policy and regulation, such as a rather late formulation of standards for biodiesel (especially the B5) and the absence of mandatory targets, is an important reason for hampering jatropha development. Besides that, lack of financial support undermined sustained jatropha planting at the farm level and lack of sustained commitment from state-owned enterprises or private companies over a long time span further contributed to jatropha project’s failure. Better implementation of the rule of law, mandatory blending requirements, hazard insurance, as well as continuous financial support, might improve the continuation of jatropha plantation schemes.

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  • Li, Jia & Bluemling, Bettina & Mol, Arthur P. J. & Herzfeld, Thomas, 2014. "Stagnating Jatropha Biofuel Development in Southwest China: An Institutional Approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(6), pages 3192-3212.
  • Handle: RePEc:zbw:espost:170727
    DOI: 10.3390/su6063192
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    Cited by:

    1. Sánchez, A.S. & Almeida, M.B. & Torres, E.A. & Kalid, R.A. & Cohim, E. & Gasparatos, A., 2018. "Alternative biodiesel feedstock systems in the Semi-arid region of Brazil: Implications for ecosystem services," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2744-2758.
    2. Richmond Antwi-Bediako & Kei Otsuki & Annelies Zoomers & Aklilu Amsalu, 2019. "Global Investment Failures and Transformations: A Review of Hyped Jatropha Spaces," Sustainability, MDPI, vol. 11(12), pages 1-23, June.

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    More about this item

    Keywords

    oil companies; smallholders; discourses; biodiesel; Sichuan; Guangxi;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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