Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 501: Policies for Second Generation Biofuels: Current status and future challenges
Håkan Eggert (), Mads Greaker and Emily Potter
Additional contact information
Håkan Eggert: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Mads Greaker: Statistics Norway, Postal: Box 8131 Dep, NO 0033 Oslo, Norway
Emily Potter: Statistics Norway, Postal: Box 8131 Dep, NO 0033 Oslo, Norway
Abstract: This report reviews the current status of second generation biofuels. First generation biofuels continue to be substantially subsidized, and this has contributed to the increasing use of such fuel. However, recent studies claim that the future of biofuels lies in second generation biofuels, in particular biochemical ethanol made from cellulose. Thus, in this report we ask the following three questions: How far is second generation biofuels from being a competitive GHG abatement technology? Is it likely that first generation biofuels will bridge the development of second generation biofuels? Should trade policy be used to protect domestic infant second generation biofuels industry from import of low cost first generation biofuels from developing countries?
Keywords: Biofuels; cellulosic ethanol; Second-generation; Subsidies; Trade policies
29 pages, May 18, 2011
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