Questions of Costs About the French Bio-Fuel Sector by Year 2010

By the end of year 2010, each member state of the European Union (the EU) ought to incorporate 5.75% of bio-fuels in the total of fuels used for transportation purposes. In order to achieve such a target, tax incentives are implemented by the French government given that the production of bio-fuels still remains unprofitable, even if oil prices are about $60/barel. After a brief introduction (1), we will first demonstrate the importance borne by the cost of agricultural raw material in the total cost of biofuels (2). For this purpose a sequential multi annual LP model is used (3). Emphasis must be placed on the possible competition between food and energy crops, should the production of energy crops require land exceeding the mandatory 10% set-aside (4). An assessment of the profitability of the different types of bio-fuels is then carried out (5).bio-fuels, Common Agricultural Policy, opportunity cost, energy crops, Kyoto Protocol, Resource /Energy Economics and Policy, C61, Q18, Q42,

Economic impact of biofuel chains in France

Given the current situation with the high price of oil (an average of $53 per barrel in 2005) and the risk of global warming, the European Union (EU) is reinforcing its objectives related to the production of biofuels: they should account for 5.75% of the overall fuel consumption by 2010 in France, as opposed to 1% in 2005. In keeping with the objective set for 2010, the biodiesel derived from rapeseed is still the preferred biofuel (27.5 million hectolitres projected), compared to the ethanol derived from wheat or sugarbeet (9.3 million hectolitres projected). Our model makes it possible to foresee that there will be a competition between food and energy crops by 2006 and that this will occur even before all of the fallow areas are requisitioned. Our paper stresses the fact that the energy and economic advantages of first-generation biofuels are not sufficient to replace large quantities of petroleum resources.Resource /Energy Economics and Policy,

From Growth to Green Growth - a Framework

Green growth is about making growth resource-efficient, cleaner and more resilient without slowing it. This paper aims at clarifying this in an analytical framework and proposing foundations for green growth. This framework identifies channels through which green policies can potentially contribute to economic growth. Finally, the paper discusses the policies that can be implemented to capture co-benefits and environmental benefits. Since green growth policies pursue a variety of goals, they are best served by a combination of instruments: price-based policies are important but are only one component in a policy tool-box that can also include norms and regulation, public production and direct investment, information creation and dissemination, education and moral suasion, or industrial and innovation policies.

From growth to green growth -- a framework

Green growth is about making growth processes resource-efficient, cleaner and more resilient without necessarily slowing them. This paper aims at clarifying these concepts in an analytical framework and at proposing foundations for green growth. The green growth approach proposed here is based on (1) focusing on what needs to happen over the next 5-10 years before the world gets locked into patterns that would be prohibitively expensive and complex to modify and (2) reconciling the short and the long term, by offsetting short-term costs and maximizing synergies and economic co-benefits. This, in turn, increases the social and political acceptability of environmental policies. This framework identifies channels through which green policies can potentially contribute to economic growth. However, only detailed country- and context-specific analyses for each of these channels could reach firm conclusion regarding their actual impact on growth. Finally, the paper discusses the policies that can be implemented to capture these co-benefits and environmental benefits. Since green growth policies pursue a variety of goals, they are best served by a combination of instruments: price-based policies are important but are only one component in a policy tool-box that can also include norms and regulation, public production and direct investment, information creation and dissemination, education and moral suasion, or industrial and innovation policies.Environmental Economics&Policies,Climate Change Economics,Economic Theory&Research,Transport Economics Policy&Planning,Labor Policies

Recent developments and prospects for the production of biofuels in the EU: Can they really be "Part of Solution"?

The European Union has launched an ambitious policy aiming at increasing the use of biofuels in land transport “with a view to contributing to objectives such as meeting climate change commitments, environmentally friendly security of supply and promoting renewable energy sources”. Another motivation, at least for some member states, is that the development of biofuels is expected to provide larger outlets for domestic farm products and new employment opportunities in rural areas and make future adjustments of the Common agricultural policy easier. The EU policy of support to energy crops, tax exemption for biofuels and mandatory incorporation targets in some member states, has resulted in a significant increase in the demand and supply of biofuels. The market share of biofuels remains modest (1 % in 2005 in the EU-25) but has increased dramatically over the last few months. The paper provides an analysis of recent developments and prospects for the production and utilization of biofuels in the EU. Its presents the potential benefits of biofuels in the EU as well as their possible drawbacks. In particular, it addresses the three related issues of energy efficiency, environmental benefits and cost competitiveness of EU biofuels.Resource /Energy Economics and Policy,

Digital Agriculture Profile: Viet Nam

Digital technologies are slowly spreading in agriculture sectors globally. But their adoption is hampered by the digital divide which requires significant public investments, improved policy and incentive frameworks to be bridged. Only after that, digital transformation will take place at scale. Digital Agriculture Profile (DAP) is meant to assess the country's readiness for this digital transformation by identifying main bottlenecks, opportunities and risks for digital transformation. DAP will thus guide public investment and policy work to accelerate the scaling up of digital transformation

Les Biocarburants : une analyse d'Economie Publique.

Biofuels are being extensively developed around the world thanks to the support of states, which is a necessary condition for their production. Thus, the focus of this dissertation is to study the regulation of biofuel policies. More precisely, this work intends to enlighten the strong links between biofuel and agricultural policies. Policies directed to biofuel production have changed dramatically over the past three years, evolving from the status of a secondary policy within agricultural policies to the position of a central policy at the crossroads of agricultural, environmental and energy policies. The work exposed in this dissertation is divided in three parts. First, the reasons that have led to the sudden development of biofuels are presented. Then, in a second part, the interactions of biofuel policies with the present agricultural policies are dealt with. The aim of this second part is to assess the extent to which these policies ought to be amended in order to account for the growing importance of energy crops in the total agricultural production. Finally, the third part focuses on the new regulatory framework imposed by the dual production of the agricultural sector (an environmental good and an agricultural commodity): a Common Agency setting is chosen to address this issue. Moreover, this last part strives to anticipate the future reforms of the CAP, in which the dual regulation (at the EU and Member State levels) calls for a new framework for policy analysis. Hence, the common thread of all the ideas developed in this dissertation is the mutual interactions that exist between biofuel and agricultural policies. Biofuel policies have emerged thanks to the reform of the CAP in 1992, are now an important player of the present CAP and will undoubtedly be a central issue in the future reforms of agricultural policies.Les biocarburants connaissent un développement rapide dans de nombreux pays grâce au soutien apporté par les Etats, qui est une condition nécessaire de leur production. Ainsi, cette thèse vise à étudier la régulation des politiques de soutien aux biocarburants. Plus précisément, ce travail a pour objectif d'éclairer les liens étroits tissés entre les politiques de biocarburants et les politiques agricoles. Les politiques de biocarburants ont évolué de manière radicale au cours des 3 dernières années, passant du statut de politique subordonnée à la politique agricole à une position centrale, à la croisée des politiques agricoles, environnementales et énergétiques. Le travail présenté dans cette thèse s'articule en trois parties. Premièrement, nous présentons les raisons qui ont présidé au développement rapide des biocarburants. Ensuite, dans une seconde partie, les interactions des politiques de biocarburants avec les politiques agricoles actuelles sont examinées. Cette seconde partie vise à évaluer les nécessaires modifications à apporter aux politiques actuelles afin de tenir compte de l'importance croissante des cultures énergétiques dans la production agricole totale. Enfin, une troisième partie s'attache à étudier un nouveau cadre théorique pour la régulation du secteur agricole, dont la production est duale (il produit à la fois un bien agricole "classique" et un bien environnemental) : la théorie de l'Agence Commune est utilisée pour cette modélisation. Ainsi, le fil conducteur des idées développées dans cette thèse est l'étude des interactions entre politiques de biocarburants et politiques agricoles. Les biocarburants sont apparus à la faveur d'une réforme de la PAC en 1992, sont maintenant des acteurs centraux de la PAC actuelle et représenteront sans conteste un aspect incontournable des futures réformes des politiques agricoles

Les politiques de biocarburants et les réformes de la Politique Agricole Commune

Diplôme : otherBiofuels are being extensively developed around the world thanks to the support of states, which is a necessary condition for their production. Thus, the focus of this dissertation is to study the regulation of biofuel policies. More precisely, this work intends to enlighten the strong links between biofuel and agricultural policies. Policies directed to biofuel production have changed dramatically over the past three years, evolving from the status of a secondary policy within agricultural policies to the position of a central policy at the crossroads of agricultural, environmental and energy policies. The work exposed in this dissertation is divided in three parts. First, the reasons that have led to the sudden development of biofuels are presented. Then, in a second part, the interactions of biofuel policies with the present agricultural policies are dealt with. The aim of this second part is to assess the extent to which these policies ought to be amended in order to account for the growing importance of energy crops in the total agricultural production. Finally, the third part focuses on the new regulatory framework imposed by the dual production of the agricultural sector (an environmental good and an agricultural commodity): a Common Agency setting is chosen to address this issue. Hence, the common thread of all the ideas developed in this dissertation is the mutual interactions that exist between biofuel and agricultural policies. Biofuel policies have emerged thanks to the reform of the CAP in 1992, are now an important player of the present CAP and will undoubtedly be a central issue in the future reforms of agricultural policies.Les biocarburants connaissent un développement rapide dans de nombreux pays grâce au soutien apporté par les Etats, qui est une condition nécessaire de leur production. Ainsi, cette thèse vise à étudier la régulation des politiques de soutien aux biocarburants. Plus précisément, ce travail a pour objectif d'éclairer les liens étroits tissés entre les politiques de biocarburants et les politiques agricoles. Les politiques de biocarburants ont évolué de manière radicale au cours des 3 dernières années, passant du statut de politique subordonnée à la politique agricole à une position centrale, à la croisée des politiques agricoles, environnementales et énergétiques. Le travail présenté dans cette thèse s'articule en trois parties. Premièrement, l’auteur présente les raisons qui ont présidé au développement rapide des biocarburants. Ensuite, dans une seconde partie, les interactions des politiques de biocarburants avec les politiques agricoles actuelles sont examinées. Cette seconde partie vise à évaluer les nécessaires modifications à apporter aux politiques actuelles afin de tenir compte de l'importance croissante des cultures énergétiques dans la production agricole totale. Enfin, une troisième partie s'attache à étudier un nouveau cadre théorique pour la régulation du secteur agricole, dont la production est duale (il produit à la fois un bien agricole "classique" et un bien environnemental) : la théorie de l'Agence Commune est utilisée pour cette modélisation. Ainsi, le fil conducteur des idées développées dans cette thèse est l'étude des interactions entre politiques de biocarburants et politiques agricoles. Les biocarburants sont apparus à la faveur d'une réforme de la PAC en 1992, sont maintenant des acteurs centraux de la PAC actuelle et représenteront sans conteste un aspect incontournable des futures réformes des politiques agricoles

On the (De)Stabilization Effects of Biofuels: Relative Contributions of Policy Instruments and Market Forces

Ethanol production has recently surged in response to biofuel policies and increased fossil oil prices. We develop a partial equilibrium model focused on U.S. corn-based ethanol production with downside risk-averse farmers to assess the consequences of ethanol production on agricultural volatility. We report substantial effects on the distribution of corn prices with increases in the variance of prices received by farmers. Risk-averse corn farmers still benefit due to the higher mean price effect. From a methodological perspective, this analysis reveals that downside risk aversion may be important

On the (de) stabilisation effects of biofuels: the relative contributions of market forces and policy instruments

Ethanol production has recently surged in response to biofuel policies and increased fossil oil prices. We develop a partial equilibrium model focused on U.S. corn-based ethanol production with downside risk-averse farmers to assess the consequences of ethanol production on agricultural volatility. We report substantial effects on the distribution of corn prices with increases in the variance of prices received by farmers. Risk-averse corn farmers still benefit due to the higher mean price effect. From a methodological perspective, this analysis reveals that downside risk aversion may be important