Second-Generation Biofuels: Economics and Policies

57 Pages Posted: 20 Apr 2016

See all articles by Miguel Carriquiry

Miguel Carriquiry

Iowa State University - Department of Economics

Xiaodong Du

affiliation not provided to SSRN

Govinda R. Timilsina

World Bank - Development Research Group (DECRG)

Date Written: August 1, 2010

Abstract

Recent increases in production of crop-based (or first-generation) biofuels have engendered increasing concerns over potential conflicts with food supplies and land protection, as well as disputes over greenhouse gas reductions. This has heightened a sense of urgency around the development of biofuels produced from non-food biomass (second-generation biofuels). This study reviews the economic potential and environmental implications of production of second-generation biofuels from a variety of various feedstocks. Although second-generation biofuels could significantly contribute to the future energy supply mix, cost is a major barrier to increasing commercial production in the near to medium term. Depending on various factors, the cost of second-generation (cellulosic) ethanolcan be two to three times as high as the current price of gasoline on an energy equivalent basis. The cost of biodiesel produced from microalgae, a prospective feedstock, is many times higher than the current price of diesel. Policy instruments for increasing biofuels use, such as fiscal incentives, should be based on the relative merits of different types of biofuels.

Keywords: Energy Production and Transportation, Renewable Energy, Climate Change Mitigation and Green House Gases, Crops and Crop Management Systems, Transport Economics Policy & Planning

Suggested Citation

Carriquiry, Miguel and Du, Xiaodong and Timilsina, Govinda R., Second-Generation Biofuels: Economics and Policies (August 1, 2010). World Bank Policy Research Working Paper No. 5406. Available at SSRN: https://ssrn.com/abstract=1669106

Miguel Carriquiry (Contact Author)

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States
(515) 294-0670 (Phone)

HOME PAGE: http://www.card.iastate.edu/facstaff/profile.aspx?id=46

Xiaodong Du

affiliation not provided to SSRN

No Address Available

Govinda R. Timilsina

World Bank - Development Research Group (DECRG) ( email )

1818 H Street NW
MSN3-311
Washington, DC 20433
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
202
Abstract Views
948
rank
153,777
PlumX Metrics