Ex-Ante Study of Biofuel Policies–Analyzing Policy-Induced Flexibility

A variety of policy types are available to foster the transition to a low-carbon economy. In every sector, including transportation, heat and power production, policymakers face the choice of what type of policy to adopt. For this choice, it is crucial to understand how different mechanisms incentivize investments in terms of improving their profitability, shaping the flexibility available for investors, and how they are affected by the surrounding uncertainty. This paper focuses on transportation-biofuel policies, particularly on the financial incentives put on the bio-component of fuel and the combination of using penalties and tax-relief. Delivery of vital policymaking insights by using two modern simple-to-use profitability analysis methods, the pay-off method and the simulation decomposition method, is illustrated. Both methods enable the incorporation of uncertainty into the profitability analyses, and thus generate insight about the flexibilities involved, and the factors affecting the results. The results show that the combination of penalties and tax-relief is a way to steer fuel-production towards sustainability. The two methods used for analysis complement each other and provide important insights for analysis and decision-making beyond what the commonly used profitability analysis methods typically provide.

Certification and Regulation of Trade in Biofuels

<p>The recent increase in biofuel production and trade has raised concerns about environmental and other impacts, and has prompted some governments to initiate measures to ensure biofuels are produced sustainably. Certification schemes are the most common measure used, and apply to both imported biofuels, and those produced in the country that has initiated the certification scheme. This dissertation argues that biofuels certification schemes, as currently drafted, are inconsistent with WTO trade agreements. Biofuel policies and certification schemes need to be better coordinated internationally to ensure that policy goals are met in a way that complies with trade agreements. The dissertation recommends that international standards need to be further developed to promote consistency between certification schemes and to support WTO consistency.</p>

Certification and Regulation of Trade in Biofuels

<p>The recent increase in biofuel production and trade has raised concerns about environmental and other impacts, and has prompted some governments to initiate measures to ensure biofuels are produced sustainably. Certification schemes are the most common measure used, and apply to both imported biofuels, and those produced in the country that has initiated the certification scheme. This dissertation argues that biofuels certification schemes, as currently drafted, are inconsistent with WTO trade agreements. Biofuel policies and certification schemes need to be better coordinated internationally to ensure that policy goals are met in a way that complies with trade agreements. The dissertation recommends that international standards need to be further developed to promote consistency between certification schemes and to support WTO consistency.</p>

2007–2012 Food Price Spikes and Crisis—A Decade and a Half Later

The food price crisis, which intermittently lasted from 2006 to about 2012–13, raised a number of issues about the roles of markets and states in ensuring food security at home and globally. This issue has arisen once again in 2020, as a result of COVID-19, undoing years of progress, but it is being resolved differently than the earlier crisis. There are fewer trade restrictions. Among the issues that the food price crisis raised was the domino effect of the US biofuel policies on maize, wheat, and rice prices in 2007–8, leading to a “perfect storm,” and policy responses of large exporters, leading to key debates about global interdependence, national vs. global objectives, and policy measures adopted by some countries—some of these debates have remained unresolved. Implications for the COVID-19 pandemic and the post-COVID-19 world are drawn in the chapter, regarding trade vs. stabilization, information systems, safety nets, and investment strategies.

Sustainable Biofuel Policies: Challenges and ethical considerations

Over the last few decades, after the emergence of biofuels at commercial scale in the 1970s, several policies, at domestic or international level, have promoted these alternative fuels, citing mainly three supporting reasons: their potential to fight energy insecurity, ability to alleviate climate change through decreasing carbon dioxide in the atmosphere -compared to conventional fuels- and capacity to promote agriculture and rural development. But, ever since the beginning of their expansion, it became clear that biofuels are not as sustainable as originally thought. And since policies and national legislative frameworks are the main instruments guiding biofuels’ development, this article aims to focus on answering the question whether current biofuel policies are efficient in ensuring sustainability, while promoting biofuels. If this is found not to be the case, then an attempt will be made in order to examine the relative existing gaps, to discuss the potential conflicting interests and ultimately to proceed with recommending adequate alterations in legislations. Ethical dimensions will also be discussed, which could provide some insightful considerations for upcoming biofuel legislations.