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Economics of Biofuels: An Overview of Policies, Impacts and Prospects

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  • Moschini, GianCarlo
  • Cui, Jingbo
  • Lapan, Harvey E.
Abstract
This paper provides an overview of the economics of biofuels. It starts by describing the remarkable growth of the biofuel industry over the last decade, with emphasis on developments in the United States, Brazil and the European Union, and it identifies the driving role played by some critical policies. After a brief discussion of the motivations that are commonly argued in favor of biofuels and biofuel policies, the paper presents an assessment of the impacts of biofuels from the economics perspective. In particular, the paper explains the basic analytics of biofuel mandates, reviews several existing studies that have estimated the economic impacts of biofuels, presents some insights from a specific model, and outlines an appraisal of biofuel policies and the environmental impacts of biofuels. The paper concludes with an examination of several open issues and the future prospects of biofuels.

Suggested Citation

  • Moschini, GianCarlo & Cui, Jingbo & Lapan, Harvey E., 2012. "Economics of Biofuels: An Overview of Policies, Impacts and Prospects," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(3), pages 1-28, December.
    • Handle: RePEc:ags:aieabj:146276
    DOI: 10.22004/ag.econ.146276
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    1. A discussion of biofuel policies, as seen from Iowa
      by Economic Logician in Economic Logic on 2012-11-20 21:35:00

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    3. Clancy, Matthew S., 2015. "Combinatorial innovation, evidence from patent data, and mandated innovation," ISU General Staff Papers 201501010800005678, Iowa State University, Department of Economics.
    4. Juan Sesmero & Michelle Pratt & Wallace Tyner, 2015. "Supply Response, Marginal Cost, and Soil Erosion Implications of Stover-based Biofuels," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(3), pages 502-523.
    5. Matthew S Clancy & GianCarlo Moschini, 2018. "Mandates and the Incentive for Environmental Innovation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(1), pages 198-219.
    6. Romano, Donato, 2012. "The Bio-based Economy: a New Development Model," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(3), pages 1-3, December.
    7. Shelare, Sagar D. & Belkhode, Pramod N. & Nikam, Keval Chandrakant & Jathar, Laxmikant D. & Shahapurkar, Kiran & Soudagar, Manzoore Elahi M. & Veza, Ibham & Khan, T.M. Yunus & Kalam, M.A. & Nizami, Ab, 2023. "Biofuels for a sustainable future: Examining the role of nano-additives, economics, policy, internet of things, artificial intelligence and machine learning technology in biodiesel production," Energy, Elsevier, vol. 282(C).
    8. Phanankosi Moyo & Mahluli Moyo & Donatus Dube & Oswell Rusinga, 2013. "Biofuel Policy as a Key Driver for Sustainable Development in the Biofuel Sector: The Missing Ingredient in Zimbabwe’s Biofuel Pursuit," Modern Applied Science, Canadian Center of Science and Education, vol. 8(1), pages 1-36, February.
    9. Nogues, Julio J. & O'Connor, Ernesto, 2020. "Missing WTO rules and a non-functioning Appellate Body: lessons from Argentina's biodiesel exports," MPRA Paper 104058, University Library of Munich, Germany.
    10. Moschini, GianCarlo & Lapan, Harvey & Kim, Hyunseok, 2016. "The Renewable Fuel Standard: Market and Welfare Effects of Alternative Policy Scenarios," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235721, Agricultural and Applied Economics Association.
    11. Karel Janda & Ladislav Krištoufek, 2019. "The Relationship Between Fuel and Food Prices: Methods and Outcomes," Annual Review of Resource Economics, Annual Reviews, vol. 11(1), pages 195-216, October.
    12. Marwa M. Sleem & Osama Y. Abdelfattah & Amr A. Abohany & Shaymaa E. Sorour, 2024. "A Comprehensive Approach to Biodiesel Blend Selection Using GRA-TOPSIS: A Case Study of Waste Cooking Oils in Egypt," Sustainability, MDPI, vol. 16(14), pages 1-25, July.
    13. JunJie Wu & Christian Langpap, 2015. "The Price and Welfare Effects of Biofuel Mandates and Subsidies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(1), pages 35-57, September.
    14. Zaman Sajid & Maria Aparecida Batista da Silva & Syed Nasir Danial, 2021. "Historical Analysis of the Role of Governance Systems in the Sustainable Development of Biofuels in Brazil and the United States of America (USA)," Sustainability, MDPI, vol. 13(12), pages 1-24, June.
    15. GianCarlo Moschini & Harvey Lapan & Hyunseok Kim, 2017. "The Renewable Fuel Standard in Competitive Equilibrium: Market and Welfare Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(5), pages 1117-1142.
    16. Karel Janda & Ladislav Kristoufek, 2019. "The relationship between fuel and food prices: Methods, outcomes, and lessons for commodity price risk management," CAMA Working Papers 2019-20, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    17. Clancy, Matthew & Moschini, GianCarlo, 2014. "Mandates and the Incentives for Innovation," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170182, Agricultural and Applied Economics Association.
    18. Paweł Niszczota & Maciej Chmielewski & Marian Gieras, 2022. "Fuel-Water Emulsion as an Alternative Fuel for Gas Turbines in the Context of Combustion Process Properties—A Review," Energies, MDPI, vol. 15(23), pages 1-21, November.

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    Keywords

    Resource /Energy Economics and Policy;

    JEL classification:

    • F1 - International Economics - - Trade
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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