The Economics of Alternative Energy Sources and Globalization

Author(s): Kurt K. Klein and Danny G. Le Roy

DOI: 10.2174/978160805233211101010013

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Government Policies to Support Biofuel Production: Why and to What Effect?

Pp: 13-23 (11)

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Abstract

SHS investigation development is considered from the geographical and historical viewpoint. 3 stages are described. Within Stage 1 the work was carried out in the Department of the Institute of Chemical Physics in Chernogolovka where the scientific discovery had been made. At Stage 2 the interest to SHS arose in different cities and towns of the former USSR. Within Stage 3 SHS entered the international scene. Now SHS processes and products are being studied in more than 50 countries.

Abstract

The principal reasons for using public policies to stimulate the production of ethanol in North America are to lower greenhouse gas emissions, increase farm income through the introduction of a new market for farm commodities, promote rural development and diversification, and reduce consumer reliance on imported fossil fuels. All these policy objectives are satisfied to some extent by biofuel production and consumption in North America. However, the degree to which they are fulfilled is modest at best, and there are important negative consequences.

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