Micro-economic modelling of biofuel system in France to determine tax exemption policy under uncertainty

Liquid biofuel support program launched in 1993 in France is implemented through tax exemptions to biofuels produced by agro-industrial chains. Activity levels are fixed by decree and allocated by the government to the different chains. Based on earmarked budget increase voted in the parliament, total quantity of biofuels will be increased by 50% in the horizon 2002–2003. A micro-economic biofuel activity model containing a detailed agricultural sector component, that is represented by 700 farms, is used to estimate costs and surpluses generated by the activity at the national level as well as tax exemption levels. Furthermore, Monte Carlo simulation has been used to search for efficient tax exemptions policies in an uncertain environment, where biofuel profitability is significantly affected by petroleum price and soja cake prices. Results suggest that, for the most efficient units both at the industry level (large size biomass conversion units) and at the agricultural sector level (most productive farms), unitary tax exemptions could be decreased by 10–20% for both biofuels, ethyl ether and methyl ester, with no risk for the viability of any existing chain.     

Stakeholders' perceptions on challenges and opportunities for biodiesel and bioethanol policy development in Thailand

Thailand is Southeast Asia's largest promoter of biofuels. Although, Thailand promotes the use of biofuels, it has yet to achieve its policy targets. This paper focuses on the first generation biofuel development in Thailand and examines the perceptions of seven stakeholder groups to guide further policy development. These stakeholders were feedstock producers, biofuel producers, government agencies, car manufacturers, oil companies, non-profit organizations and end users. It combines a Strengths, Weakness, Opportunities and Threats (SWOT) framework with an Analytical Hierarchy Process (AHP) framework and a TOWS Matrix for analysis of stakeholder's perceptions to propose priorities for policy development. Five policies were of high priority for development of biofuel. These are: (1) promoting biofuel production and use in long term through government policies, (2) revising government regulations to allow sale of biofuel products to other domestic industries while keeping retail prices of blended biofuels below those of regular ethanol and biodiesel, (3) improving farm management and promoting contract farming, (4) expanding cultivation area and yield without affecting food production and environmental sustainability, and (5) balancing biofuel feedstock use between the food and energy industries.     

The price for biofuels sustainability

The production and usage of biofuels has increased worldwide, seeking goals of energy security, low-carbon energy and rural development. As biofuels trade increased, the European Union introduced sustainability regulations in an attempt to reduce the risks associated with biofuels. Producers were then confronted with costs of sustainability certification, in order to access the EU market. Hopes were that sustainably-produced biofuels would be rewarded with higher prices in the EU. Based on a review of recent literature, interviews with traders and price data from Platts, this paper explores whether sustainability premiums emerged and if so, did they represent an attracting feature in the market for sustainable biofuels. This article finds that premiums for ethanol and biodiesel evolved differently between 2011 and 2012, but have been in general very small or inexistent, with certified fuels becoming the new norm in the market. For different reasons, there has been an apparent convergence between biofuel policies in the EU and the US. As market operators perceive a long-term trend for full certification in the biofuels market, producers in developing countries are likely to face additional challenges in terms of finance and capacity to cope with the sustainability requirements.     

Biofuel Based Cogenerative Energy Conversion Systems

The goal of this study is to investigate how co-operation between industry and district heating companies can improve profitability of biofueled cogenerative investments in small to medium-sized applications. Currently advanced biomass gasification and gas turbine combined cycle has been found to be a promising cogenerative conversion technology for the recovery of heat present in biomass fuel. Increased biofuel based cogenerative power production in the future is clearly dependent on the improvement of both performance and investment costs of new high performance technology, and on the nature of policy instruments designed to promote the technology. The use of biofuels for cogeneration on a large scale is focused mainly on forest industry sites, where considerable quantities of biomass are available. While cogeneration provides several environmental benefits by making use of waste heat and waste products, air pollution is a concern any time fossil fuels or biomass are burned.     

Investments into forest biorefineries under different price and policy structures

Increasing scarcity of oil reserves and the high CO₂ emissions from using oil have contributed to the development of renewable biofuels. Pulp and paper mill integrated forest biorefineries offer one important means to increase biofuel production. This study analyzes the effects of policies to support biofuel production in the pulp and paper sector. We study the relative effectiveness of three biofuel supporting policy instruments, namely production subsidy, input subsidy and investment subsidy. We present a partial equilibrium pulp and paper market model with a biorefinery investment option. A numerical model is used to evaluate the impacts of policy instruments on wood prices, as well as input choices and investment strategies of pulp and paper industries. The data represent the Finnish pulp and paper sector. We evaluate the values and direct costs of the policy instruments in a situation of exogenous biofuel production targets. The direct costs of input and investment subsidies are higher than those of a production subsidy. With all the policy instruments, Finnish pulp and paper mills would invest in wood-gasifying technology, instead of black liquor based one. The number of biorefinery units is dependent on the subsidy type — investment and input subsidies are likely to result in more numerous but smaller biofuel production units than a production subsidy. With all the policy instruments the demand for wood increases in Finland leading to higher wood prices. This, in turn, could reflect negatively on the profitability of the pulp and paper industries. To a significant degree, the model and the results can be generalized to other countries and markets where integrated pulp and paper mills are operating.     

Impacts of a United States’ biofuel policy on New Zealand's agricultural sector

The rise in oil prices has spurred interest in biofuels. Policies in the United States like the renewable fuel standard (RFS) have led to an expansion of ethanol production, while the New Zealand government has mandated a minimum level of biofuel sales.The research used a partial equilibrium model of international trade to quantify the price and farmgate income effects of the US RFS policy. The goal was to examine the competition between food and biofuel production and to quantify the impact of the policy on the agricultural sector in New Zealand.The RFS policy has a significant impact on corn prices, but a small effect on livestock prices and production. There thus appears to be little conflict between food and fuel uses for corn at the level of the RFS mandate. New Zealand's pasture-based livestock sector benefits from the use of corn for ethanol production: it receives better prices for its products, but does not face the same input cost increases as competitors. The results suggest that New Zealand faces an interesting decision: it could support investment in biofuels research, or benefit from the biofuels boom through the indirect impacts on demand and prices for meat and milk.     

基于微流体技术的生物燃料开发与应用

为了加快生物燃料产业的发展速度,提高生物燃料的产量和质量,微流体技术被引入到了生物燃料领域。文章聚焦于微流体技术在生物燃料领域的应用,重点介绍了微流体技术及装置在生物柴油和生物乙醇生产中的应用,讨论了影响生物燃料微流体反应器性能的相关因素,最后,提出了微流体技术在生物燃料领域的应用过程中所面临的问题并展望了其应用前景。     

Insights into biofuel development in Burkina Faso: Potential and strategies for sustainable energy policies

In many African countries, the upswing in oil prices is one factor that favours the adoption and implementation of a national biofuel policy. This trend has a major impact on state budgets and domestic trade balances, while also limiting the access of rural inhabitants to modern energy services. Contribution of biofuels in stabilizing the energy sector, influences ongoing negotiations on the global dynamics of climate change, the reduction in greenhouse gas (GHG) emissions and sustainable development. The question of biofuels as an alternative energy thus depends on international, national and local considerations. Biofuels represent opportunities, e.g., energy independence and security, new national income and employment sources, as well as potential food security problems. African policy makers therefore need to make the right choices to guide the development of biofuel production and use.This article aims to support the development of a biofuel policy by reviewing the latest technical, economic, environmental and social knowledge so as to be able to evaluate the potential and limits of biofuels in Burkina Faso.     

Investigating biofuels through network analysis

Biofuel policies are motivated by a plethora of political concerns related to energy security, environmental damages, and support of the agricultural sector. In response to this, much scientific work has chiefly focussed on analysing the biofuel domain and on giving policy advice and recommendations. Although innovation has been acknowledged as one of the key factors in sustainable and cost-effective biofuel development, there is an urgent need to investigate technological trajectories in the biofuel sector by starting from consistent data and appropriate methodological tools. To do so, this work proposes a procedure to select patent data unequivocally related to the investigated sector, it uses co-occurrence of technological terms to compute patent similarity and highlights content and interdependencies of biofuels technological trajectories by revealing hidden topics from unstructured patent text fields. The analysis suggests that there is a breaking trend towards modern generation biofuels and that innovators seem to focus increasingly on the ability of alternative energy sources to adapt to the transport/industrial sector.     

Biofuel support policies in Europe: Lessons learnt for the long way ahead

Biofuel consumption in the EU is growing rapidly but major efforts will need to be undertaken if the EU's objectives for 2010 and beyond are to be achieved. This article analyses the strengths and weaknesses of different biofuel support policies based on the experiences gained in pioneering countries and explores scenarios for their possible impacts in the long-term. It comes to the conclusion that important pre-conditions such as fuel standards and compatibility with engines are in place or being introduced on an EU-wide basis. Current and future policy support therefore focuses on creating favourable economic or legal frameworks to accelerate the market penetration of biofuels. The ambitious targets endorsed in terms of biofuel market shares require the implementation of efficient policy instruments. At the same time, large consumption volumes and the advent of innovative production technologies make it possible for Member States to promote specific types of biofuels, depending on their main objectives and natural potentials. This will require complementary instruments such as subsidies for production facilities, user incentives or feedstock subsidies.     

Fostering citizen deliberations on the social acceptability of renewable fuels policy: The case of advanced lignocellulosic biofuels in Canada

It is widely recognized that a lack of social acceptance is likely to hinder the ability of governments to achieve policy targets concerning renewable energies. In this paper, we discuss the results of a pre- and post-test online survey that was conducted as part of the 2012 “Advanced Biofuels” deliberative democracy public engagement event in Montréal, Québec. The event sough to foster public learning and discussion in order to produce socially acceptable policy input for one type of renewable energy: advanced lignocellulosic biofuels. Survey results show that the majority of participants were strongly supportive of advanced lignocellulosic biofuel development in Canada after the deliberative event. By the end of the event, support also grew for current Canadian biofuel policies and many agreed that increasing biofuel production should be widely supported by the Canadian public. However, despite this support, about two thirds of participants revealed that they did not feel included in government decisions about biofuels. The gap between support after inclusive deliberation and expressed exclusion from Canadian government decisions points to the importance of fostering future citizen engagements in this area of renewable energy policy.     

External governance and the EU policy for sustainable biofuels,the case of Mozambique

Growing demand for transport biofuels in the EU is driving an expansion of the industry in developing countries. Large-scale production of energy crops for biofuel, if mismanaged, could cause detrimental environmental and social impacts. The aim of this study is to examine whether the newly adopted EU Directive 2009/28/EC and its sustainability certification system can effectively ensure sustainable production of biofuels outside the EU. Mozambique, a least developed country with biofuels ambitions, is selected as empirical case. The effectiveness of the EU policy in analysed employing ideal models of external governance (hierarchical, market and network governance) as analytical framework. The findings show that the EU attempts to impose its rules and values on sustainable biofuels using its leverage through trade. The market approach adopted by the EU is expected to produce only unstable (subject to abrupt changes of market prices and demand) and thin (limited to climate and biodiversity issues) policy results. Stronger emphasis on a network oriented approach based on substantial involvement of foreign actors, and on international policy legitimacy is suggested as a way forward.     

Public attitudes toward political and technological options for biofuels

This paper explores detailed public attitudes regarding the expanding range of biofuels technologies and policy options. Subjects from 34 in-depth focus groups in central Indiana were fairly knowledgeable about biofuels technologies, but uninformed about biofuels policies despite being from a state where biofuels are a salient political issue. A narrow majority was supportive of biofuels in general, but expressed greater enthusiasm about “second generation” biofuels. Subject beliefs about biofuels’ economic and environmental impacts were most important in shaping these opinions, rather than concerns about energy independence or other issues. In terms of policy options, subjects were most supportive of an alternative fuels standard and least supportive of a fixed subsidy and a cap and trade policy. In contrast to arguments about technologies, participants primarily framed their attitudes toward policies in terms of fairness. Although discussion did not substantially change aggregate preferences for most policies, it did increase support significantly for at least one policy proposal—a variable subsidy for ethanol. It is particularly noteworthy that subjects generally did not support the most common biofuel technology—corn-based ethanol—or the most prominent biofuels policy option—the fixed subsidy—despite residing in a state hosting a strong corn industry and staunch political advocates for both positions.     

Improving the environmental performance of biofuels with industrial symbiosis

In the production of biofuels for transport many critics have argued about the poor energy efficiency and environmental performance of the production industries. Optimism is thus set on the production of second generation biofuels, while first generation biofuels continue to dominate worldwide. Therefore it is interesting to consider how the environmental performance of first generation biofuel industries can be improved. The field of industrial symbiosis offers many possibilities for potential improvements in the biofuel industry and theories from this research field are used in this paper to highlight how environmental performance improvements can be accomplished. This comes in the form of by-product synergies and utility synergies which can improve material and energy handling. Furthermore, the processes and products can gain increased environmental performance improvements by the adaption of a renewable energy system which will act as a utility provider for many industries in a symbiotic network. By-products may thereafter be upcycled through biogas production processes to generate both energy and a bio-fertilizer. A case study of an actual biofuel industrial symbiosis is also reviewed to provide support for these theories.     

发电企业应用全面风险管理体系的分析与建议

电力市场化机制的引入,可以有效地促进发电企业竞争,提高运行效率,优化资源配置,同时也带来了许多不确定因素,使得发电企业面临风险的概率日益增加。面对我国发电行业发展的现状,增强风险意识,树立风险观念,加强风险管理将是发电企业的重要任务。结合应用实例,介绍了发电企业全面风险管理体系建设的经验,并提出了进一步完善的措施和建议。     

Imported palm oil for biofuels in the EU: Profitability,greenhouse gas emissions and social welfare effects

We examine the social desirability of renewable diesel production from imported palm oil in the EU when greenhouse gas emissions are taken into account. Using a partial market equilibrium model, we also study the sectoral social welfare effects of a biofuel policy consisting of a blend mandate in a small EU country (Finland), when palm oil based diesel is used to meet the mandated quota for biofuels. We develop a market equilibrium model for three cases: i) no biofuel policy, ii) biofuel policy consisting of socially optimal emission-based biofuel tax credit and iii) actual EU biofuel policy. Our results for the EU biofuel market, Southeast Asia and Finland show very little evidence that a large scale use of imported palm oil in diesel production in the EU can be justified by lower greenhouse gas emission costs. Cuts in emission costs may justify extensive production only if low or negative land-use change emissions result from oil palm cultivation and if the estimated per unit social costs of emissions are high. In contrast, the actual biofuel policies in the EU encourage the production of palm oil based diesel. Our results indicate that the sectoral social welfare effects of the actual biofuel policy in Finland may be negative and that if emissions decrease under actual biofuel policy, the emission abatement costs can be high regardless of the land use change emissions.     

The policy and practice of sustainable biofuels: Between global frameworks and local heterogeneity. The case of food security in Mozambique

This study explores the relationship between different biofuel production systems, the context in which they operate, and the extent to which various types of frameworks and schemes are able to monitor and promote their sustainability. The paper refers to the European Union Renewable Energy Directive and two international certification schemes (Roundtable on Sustainable Biofuels and NTA 8080/81) that can provide a ‘licence to sell’ biofuels on the EU market, and to the Mozambican policy framework for sustainable biofuels that provides a ‘licence to produce’ biomass for biofuels in Mozambique. Food security is used as a case study, and the food security impacts of two agro-industrial and two smallholder biofuel projects in Mozambique are described and analysed. The sustainability frameworks and schemes used in this study are able to address some, but not all, of the heterogeneity between and within different biofuel production systems. The emphasis is on monitoring agro-industrial projects while smallholder projects tend to slip through the net even when their negative impacts are evident. We conclude that globally applicable sustainability principles are useful, however, they should be operationalised at local or production system levels. This approach will support balancing between global frameworks and local heterogeneity.     

Strategies for 2nd generation biofuels in EU – Co-firing to stimulate feedstock supply development and process integration to improve energy efficiency and economic competitiveness

The present biofuel policies in the European Union primarily stimulate 1st generation biofuels that are produced based on conventional food crops. They may be a distraction from lignocellulose based 2nd generation biofuels – and also from biomass use for heat and electricity – by keeping farmers' attention and significant investments focusing on first generation biofuels and the cultivation of conventional food crops as feedstocks. This article presents two strategies that can contribute to the development of 2nd generation biofuels based on lignocellulosic feedstocks. The integration of gasification-based biofuel plants in district heating systems is one option for increasing the energy efficiency and improving the economic competitiveness of such biofuels. Another option, biomass co-firing with coal, generates high-efficiency biomass electricity and reduces CO₂ emissions by replacing coal. It also offers a near-term market for lignocellulosic biomass, which can stimulate development of supply systems for biomass also suitable as feedstock for 2nd generation biofuels. Regardless of the long-term priorities of biomass use for energy, the stimulation of lignocellulosic biomass production by development of near term and cost-effective markets is judged to be a no-regrets strategy for Europe. Strategies that induce a relevant development and exploit existing energy infrastructures in order to reduce risk and reach lower costs, are proposed an attractive complement the present and prospective biofuel policies.     

合同能源管理(EMC)项目风险分析及应对策略

合同能源管理(EMC)是一种将能源节约与市场机制有效结合的节能模式。介绍了EMC的三种基本运作模式:节能量保证模式、节能效益分享模式和能源费用托管模式。目前我国节能服务产业迅速发展,政府制定并出台了多项政策支持和推进EMC机制的推广、应用。从政策风险、市场风险、融资风险、经营风险和信用风险等方面分析了EMC项目所面临的主要风险。提出了加强EMC项目风险管理的主要对策:进一步完善相关的法律、法规,加强经济激励手段,在资金方面为节能项目提供政策支持;扶持节能服务公司,提高技术实力,对发展较好的EMC管理机构加强指导,树立EMC管理模式典型;扩展融资渠道,搭建交易平台,设立专项风险投资基金,对进入节能服务领域的金融机构风险投资机构等进行鼓励;建立节能服务公司与节能企业的双向信用档案,完善评价标准。     

The net cost of biofuels in Thailand—An economic analysis

Biofuels are expected to represent a growing portion of liquid fuel consumption in Thailand due to environmental and social considerations in conjunction with policy goals supporting their domestic production and consumption. This paper reviews the economic costs associated with biofuel policy implementation in Thailand in the short term target year of 2011. Internal (production) and external (environmental, social, etc.) costs and benefits are evaluated, and, where possible, monetized. Domestic production of biofuel is calculated to be 9.5 billion THB (317 million USD) more expensive than importing the equivalent amount of petroleum. The environmental benefits from GHG savings as well as losses due to increased ground level ozone formation and government expenditure to support the biofuel industry yield a total “net cost” of 8.6 billion THB or 121 THB (4.04 USD) per capita for the year 2011. This result is contextualized with the (non-monetized) consideration that although biofuels are somewhat more expensive in the short term, their domestic production allows virtually all of the money to stay within the Thai economy as opposed to being sent abroad. This fact, coupled with significant uncertainty in future petroleum prices, could strongly influence the direction of Thai policy with respect to biofuels.