are biofuels a feasible option abstract recently a number of objections have been raised against the use of ethanol produced from agricultural products such as maize sugarcane wheat or sugar beets as a replacement for gasoline despite some of their advantages such as being cleaner and to some extent renewable we address these objections in this paper topics discussed include the corn connection which was theorized to be a cause of deforestation in the amazonia the rise of food prices due to ethanol production and the real possibilities of ethanol in reducing greenhouse gas emissions it has been shown that such concerns are grossly exaggerated and that ethanol from sugarcane as produced in brazil is the preferred option for the production of fuel not only in terms of cost but also as a favourable energy balance finally the possibility of expanding ethanol production to other sugar producing countries is also discussed

the economics of a blend mandate for biofuels a biofuel blend mandate may increase or decrease consumer fuel prices with endogenous oil prices depending on relative supply elasticities biofuel tax credits always reduce fuel prices tax credits result in lower fuel prices than under a mandate for the same level of biofuel production if tax credits are implemented alongside mandates then tax credits subsidize fuel consumption instead of biofuels this contradicts energy policy goals by increasing oil dependency co 2 emissions and traffic congestion while providing little benefit to either corn or ethanol producers these social costs will be substantial with tax credits costing taxpayers 28 7 billion annually by 2022 copyright 2008 oxford university press

the quest for eco social efficiency in biofuels production in brazil equating eco efficiency with the business link to sustainable development is clearly limited especially with the new paradigms brought up by corporate social responsibility which has shown that the private sector s contribution to sustainable development can go far beyond the sphere of pollution control it is necessary to give eco efficiency a broader meaning so that it can support the quest for sustainable development this requires the inclusion of social aspects leading to a kind of eco social efficiency the present paper illustrates this idea by comparing brazilian production and use of ethanol from sugarcane in the context of the national alcohol program proalcool with biodiesel production and use in the context of the biodiesel national program pnpb despite the problems presented pnpb was designed to encourage companies to align productivity concerns with social ones what could be the beginning of the here called eco social efficiency

biofuels what a biopact between north and south could achieve abstract with very few exceptions such as the recent remarks by international energy agency iea head claude mandil commentators on the world s energy issues have yet to recognize the enormous contribution that biofuels producers from the south could make to solving the world s greenhouse gas emission problems and problems to do with the peaking of oil supplies once the equation between biofuels and high cost land intensive cultivation in the north is broken and a quite different scenario involving production in the south is adopted then the possibilities are dramatically changed the argument of this paper is that a transition to substitution of 20 percent of oecd gasoline needs by 2020 could be met from the south by creating the equivalent of 18 brazils over the course of the next decade such an enormous transition will not occur by itself or through the operation of market forces alone it needs an institutional framework one that guarantees for the countries of the north regular supplies of biofuels produced in a responsible manner and guarantees for the countries of the south open markets for the biofuels produced the oecd is in the best position to bring about such an arrangement through taking the initiative of offering developing countries a biopact between north and south thereby creating for the first time a global market for biofuels the launch of an international biofuels forum under the auspices of the un in early 2007 is a step towards the creation of such an international framework where north south issues on biofuels may be fruitfully addressed

do product innovation and news about the r d process produce large price changes and overreaction the case of pharmaceutical stock prices do extreme price changes of pharmaceutical stocks reflect unexpected scientific information produced during the drug rd i e food and drug administration fda approvals in 6 of these cases news of a scientific nature in

can new legislation in importing countries represent new barriers to the development of an international ethanol market the use of ethanol as a fuel has been attracting increasing attention in countries that are interested in reducing their dependence on imported oil and lowering their greenhouse gas emissions despite this growing interest the global ethanol market is still incipient because of the small number of producing countries the lack of technical standardization and the existence of tariff and non tariff trade barriers new laws have taken effect in 2010 in the united states and the european union imposing domestic requirements for sustainable production of ethanol although these are generally positive developments they can create greater difficulties for the development of an international ethanol market this work examines the technical barriers posed by these new laws and how they can be resolved under the auspices of the world trade organization in addition this work analyses the brazilian and caribbean cases discussing to what extent these new technical barriers will affect ethanol production and exports arising from these countries

biofuels and sustainable energy development in brazil summary through the assessment of three decades of the alcohol program in brazil the paper shows that adequate public policies regarding biomass production can deliver direct benefits like energy security improvement foreign exchange savings and local employment generation reduced urban air pollution and avoided co2 emissions moreover the paper shows that brazilian produced ethanol has faced economies of scale technical progress and productivity gains and is no longer dependent on subsidies to be competitive the paper also examines the potential in brazil for fostering other biofuels namely biodiesel obtained from vegetable oils as well as their implications on sustainable energy development

removal of u s ethanol domestic and trade distortions impact on u s and brazilian ethanol markets we analyze the impact of trade liberalization and removal of the federal tax credit in the united states on u s and brazilian ethanol markets using a multi market international ethanol model calibrated on 2005 market data and policies the removal of trade distortions induces a 23 2 percent increase in the price of world ethanol on average between 2006 and 2015 relative to the baseline the u s domestic ethanol price decreases by 14 1 percent which results in a 7 5 percent decline in production and a 3 2 percent increase in consumption the lower domestic price leads to a 2 5 percent rise in the share of fuel ethanol in gasoline consumption u s net ethanol imports increase by 192 8 percent brazil responds to the higher world ethanol price by increasing its production by 8 8 percent on average total ethanol consumption in brazil decreases by 3 2 percent and net exports increase by 61 9 percent relative to the baseline the higher ethanol price leads to a 4 7 percent increase in the share of sugarcane used in ethanol production the removal of trade distortions and 51 per gallon tax credit to refiners blending ethanol induces a 22 5 percent increase in the world ethanol price

towards a sustainably certifiable futures contract for biofuels abstract how are biofuels to be certified as produced in a sustainable and responsible fashion in the global debate over this issue one party to the proceedings seems rarely to be mentioned namely the commodities exchanges through which a global biofuels market is being created in this contribution i propose a solution to the problem of sustainability certification through a biofuels futures contract equipped with proof of origin documentation the proposal does not call for any radical break with current practice extending existing certification procedures with a requirement for the vendor to provide documentation probably in barcoded form of the history of the biofuel offered for sale including plantation and biorefinery where the biofuel was produced and subsequent blendings it may have undergone the proposal is thus compatible with the blending practices of large global traders whose activities are the source of the difficulties of other approaches to certification it is argued that if such a sustainable futures contract for bioethanol in the first instance were to be introduced then it would likely trade at a premium and become the primary vehicle for north south trade in biofuels

international trade in biofuels an introduction to the special issue abstract currently many countries are establishing goals for substituting biofuels for fossil fuels these goals usually foresee 5 10 substitution while today s production in most countries is far below 2 evidently many countries will seek to meet their ambitious biofuel targets through imports this global trade in biofuels which is to some extent already taking place will have a major impact not only on other commodity markets like vegetable oils or animal fodder but also on the global land use change and on environmental impacts this special issue focuses on the relation between trading policy making and sustainability impacts of biofuels it demonstrates the strong but complex link between biofuels production and the global food market it unveils policy measures as the main drivers for production and use of biofuels and it analyzes various sustainability indicators and certification schemes for biofuels with respect to minimizing the adverse effects of biofuels while maximizing the benefits of the future use of biofuels

the economics of tropical deforestation and land use an introduction to the special issue this paper both introduces the special issue on the economics of tropical deforestation and land use and conducts a synthesis crosscountry analysis of tropical agricultural land expansion agricultural development is the main factor determining land expansion but institutional factors have an important influence income effects vary from region to region and do not always display an ekc relationship the case studies comprising this special issue provide further case study insights into tropical deforestation and land use through spatial analysis of locational factors cge modeling of policy scenarios assessing external market impacts on land clearing and modelling state interventions and taxation

a framework for scaling and framing policy problems in sustainability abstract it is argued that a necessary but lacking component of our approach in seeking policy responses to sustainability issues is some repeatable means whereby the relative magnitude and characteristics of these various policy problems faced in a given context can be analysed and described to this end a simple and tentative framework is constructed based on the definition of the key attributes which shape policy problems pertaining to environmental change these are spatial scale of cause and effect magnitude timing and longevity of possible impacts reversibility mensurability complexity and connectivity nature of cause s relevance to the given polity tractability availability and acceptability of means public concern and existence of goals these attributes inform a general taxonomy of micro meso and macro problems the attributes and the taxonomy are described with supporting examples to illustrate possible application of the framework it is discussed briefly in the contexts of operationalising the precautionary principle and policy instrument choice it is concluded that the framework can help focus debate and operationalise vague principles introduce relativity into the notion of sustainability and make policy choice more efficient

the effect of labor market performance on deforestation in developing countries under open access an example from rural nepal abstract this research examines the deforestation behavior of smallholder agriculturalists as off farm labor market conditions change a model of a representative village is proposed which incorporates dependence on open access forests for fuelwood and animal raising dynamic simulations are then presented which compare time paths of forest stocks deforestation levels and household labor supply under a variety of conditions despite the open access regime assumed in the model with a perfect albeit low wage off farm labor market the agro forestry system in nepal is basically stable an alternative model where there is no off farm labor market eliminates the important features of adjustment to deforestation which generate forest stability suggesting that the availability of off farm opportunities is an important determinant of deforesting behavior and equilibrium forest stock levels

ethanol production food and forests this paper investigates the direct and indirect impacts of ethanol production on land use deforestation and food production a partial equilibrium model of a national economy with two sectors and two regions one of which includes a forest is developed it analyses how an exogenous increase in the ethanol price affects input allocation land and labor between sectors energy crop and food the total effect of ethanol prices on food production and deforestation is decomposed into three partial effects first the well documented effect of direct land competition between rival uses arises it increases deforestation and decreases food production second an indirect displacement of food production across regions possibly provoked by the reaction of international food prices increases deforestation and reduces the food sector s output finally labor mobility between sectors and regions tends to decrease food production but also deforestation the total impact of ethanol production on food production is negative while there is an ambiguous impact on deforestation

unwanted effects of european union environmental policy to promote a post carbon industry the case of energy in the european ceramic tile sector global warming combined with low carbon transition plans is threatening the future of high energy consumption industry sectors in the european union eu the need to respond to environmental challenges is demonstrated by support for international level energy policies and legal requirements such as the kyoto protocol which the eu supports and increased eu level environmental legislation and energy policies the effect of these initiatives is gradually transforming industrial activities in the eu however since not all countries have adopted these policies evaluation of their net effect needs to take account also of side effects such as delocalization of industry activity and the legal environmental frameworks in the countries where companies have chosen to relocate this paper analyses eu energy policy and its impact on a particular energy intensive industry the european ceramic tile sector the discussion in this paper is not about the purpose of eu legislation but about its effects on a specific industry the effect of policy on industry is not a new topic but the question of the unwanted effects of environmental and energy policy on european industry is becoming more relevant as the struggle to achieve a post carbon europe increases in focussing on a specific set of eu legislation on a particular industry this article adds to the debate by showing the negative effects of policy mechanisms the need for a scientific evaluation of the systemic changes required for a transition to a resource efficient green and competitive low carbon economy outlined in the 7th environment action programme is highlighted it is suggested that the eu should periodically re evaluate its emissions trading scheme legislation to include specific actions and a follow up system which would prevent the best performing environmental companies from delocalizing or shutting down

brazilian biofuels and social exclusion established and concentrated ethanol versus emerging and dispersed biodiesel increasing interest in biofuels trade between developed and developing countries has spurred worldwide discussions on issues such as subsidies and the food for fuel crisis one issue missing in recent discourse is the pressure exerted on developing countries to adopt large scale mechanized farming practices to increase economic efficiencies such approaches often exclude small scale farmers from participating in the emerging biofuels market thus exacerbating poverty and social exclusion drawing on both qualitative and technical data we discuss such pressures using brazilian ethanol and biodiesel production pressure from international markets to become more economically efficient may contribute towards the erosion of recent schemes to encourage social benefits for small farmers in biodiesel production we conclude with trade and policy implications

corporate bond covenants and social responsibility investment this paper examines the effect of corporate social responsibility csr on the number of bond covenants we find that a high csr score has a negative association with the number of bond covenants moreover our results are more pronounced for firms with a high bid ask spread and high agency costs our analysis highlights the effect of the good stakeholder relationship on the bond contracts

energy from sugarcane bagasse under electricity rationing in brazil a computable general equilibrium model in the midst of the institutional reforms of the brazilian electric sectors initiated in the 1990s a serious electricity shortage crisis developed in 2001 as an alternative to blackout the government instituted an emergency plan aimed at reducing electricity consumption from june 2001 to february 2002 brazilians were compelled to curtail electricity use by 20 since the late 1990s but especially after the electricity crisis energy policy in brazil has been directed towards increasing thermoelectricity supply and promoting further gains in energy conservation two main issues are addressed here firstly we estimate the economic impacts of constraining the supply of electric energy in brazil secondly we investigate the possible penetration of electricity generated from sugarcane bagasse a computable general equilibrium cge model is used the traditional sector of electricity and the remainder of the economy are characterized by a stylized top down representation as nested ces constant elasticity of substitution production functions the electricity production from sugarcane bagasse is described through a bottom up activity analysis with a detailed representation of the required inputs based on engineering studies the model constructed is used to study the effects of the electricity shortage in the preexisting sector through prices production and income changes it is shown that installing capacity to generate electricity surpluses by the sugarcane agroindustrial system could ease the economic impacts of an electric energy shortage crisis on the gross domestic product gdp

value of strategic alliances evidence from the bond market abstract the objective of this study is to examine the relationship between strategic alliances and the cost of debt proxied by the at issue yield spread of bond offerings we hypothesize that the participation of strategic alliances lowers a firm s cost of debt because it improves the level and stability of future profit streams and reduces information asymmetry among investors based on 2150 bond issuing firms during the period 1985 2009 we find evidence consistent with this argument furthermore we find that the mitigating effect of strategic alliances on the debt cost is much more pronounced for firms with higher product market competition more severe financial constraints and greater r d investments taken together this is the first paper to examine the importance of strategic alliances in the bond market and our results highlight that corporate alliance activity is valued outside the equity market and creates additional benefits that result in lower cost of debt financing

import demand for brazilian ethanol a cross country analysis abstract this study presents an empirical analysis of the import demand for brazilian ethanol by its six major foreign buyers the primary objectives of this study were to identify the economic factors affecting the demand for ethanol imports and to derive long run price and income elasticities of import demand these elasticities could be used to analyze the impact of government policies such as mandatory gasoline ethanol blends and import tariffs import demand models were estimated with ordinary least squares ols using quarterly time series data for the 1997 2007 time period the results suggest that the factors influencing the import demand for ethanol vary across countries markets adopting mandatory blends of renewable fuels tend to have less price elastic import demand schedules ethanol imports were found to be price elastic and statistically significant in the caribbean region 1 66 mexico 2 08 japan 1 44 and nigeria 1 38 while import demand was price inelastic and not statistically different from zero in the us 0 76 and europe 0 21 the regression results could not determine the impacts of import tariffs for the united states mexico and nigeria on the quantity of imports because tariffs did not vary during the time period studied results show that mandatory gasoline ethanol blends have been an important determinant of ethanol imports

impacts of urbanization on renewable energy consumption in china abstract in this paper we used the logarithmic mean divisia index method to investigate the impact of urbanization on renewable energy consumption growth recg the growth in renewable energy consumption is attributed to the urbanization effect energy mix effect energy intensity effect economic effect and population effect recg can be roughly divided into the slow growth stage the fluctuant growth stage and the accelerated growth stage the results showed that the energy mix effect economic effect and population effect positively affected recg however a significantly negative relationship was found between energy intensity and recg furthermore the contribution of urbanization differed in recg stages and urbanization contributed more to the total energy consumption growth than to recg this study would thus provide policymakers with insights about the link between urbanization and renewable energy consumption

the price for biofuels sustainability abstract 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

economic and policy issues in the production of algae based biofuels a review despite the initial environmental and supply benefits associated with conventional biofuels leading to substantial policy support research has indicated that these benefits might have been overly optimistic negative externalities associated with food and resource allocation have also resulted in an increasing scepticism about the long term potential of transitioning to biofuels this review presents the economic benefits and costs surrounding conventional biofuels and suggests the need for further development of a third generation feedstock based on algae the article provides guidance on the potential for a policy framework for supporting microalgae as a source of biofuels given the numerous associated positive externalities

the alcohol program the rational for the launching of the alcohol program from sugarcane in brazil in the mid 1970 s is described as an answer to the first oil crisis as well as a solution to the problem of the fluctuating sugar prices in the international market the technical characteristics of ethanol as a fuel are given as well as a discussion of the evolution of the cost of production environmental and social consequences regarding costs ethanol production was close to 100 dollars a barrel in the initial stages of the program in 1980 falling rapidly due to economies of scale and technological progress to half that value in 1990 followed by a slower decline in recent years considering the hard currency saved by avoiding oil importation through the significant displacement of gasoline by ethanol and the decrease in the amount of external debt that the displaced oil importation was able to provide it is possible to demonstrate that the alcohol program has been an efficient way of exchanging dollar debt by national currency subsidies which are paid by the liquid fossil fuel users even with this economic gains for society the continuity of the program is difficult to maintain two solutions to this problem are discussed internal expansion of the use of ethanol and exports to industrialized countries where it could be used as an octane enhancer the main attractiveness of the program the reduction of co2 emissions as compared to fossil fuels is stressed mainly as a solution for industrialized countries to fulfill their commitments with the united nations framework climate change convention

removing distortions in the u s ethanol market what does it imply for the united states and brazil we analyze the impact of trade liberalization and removal of the federal tax credit in the united states on ethanol markets using a multimarket international ethanol model we find that u s trade barriers have been effective in protecting the ethanol industry under current policy there is separability of the u s ethanol market from world markets with trade liberalization the ethanol market deepens making it less susceptible to price volatility the effect of trade liberalization extends beyond ethanol markets affecting agricultural markets the results show that the impact of removal of the tax credit overrides the impact of the tariff removal copyright 2008 oxford university press

agricultural expansion and deforestation modelling the impact of population market forces and property rights abstract this paper compares four different modelling approaches to agricultural expansion and deforestation and explores the implications of assumptions about the household objectives the labour market and the property rights regime a major distinction is made between population and market based explanations many of the popular policy prescriptions are based on the population approach assuming subsistence behaviour and limited market integration within a more realistic particularly for the long term effects market approach well intentioned policies such as agricultural intensification programmes may boost deforestation many forest frontier contexts are also characterized by forest clearing giving farmers land rights deforestation becomes an investment to the farmer and a title establishment strategy land titling and credit programmes may therefore increase deforestation

do favorable land price policy affect renewable energy industry evidence from photovoltaics abstract renewable energy is necessary for sustainable social and economic development this is particularly so with global energy shortages the continuous deterioration of ecosystems and the environment as well as the world population explosion this article qualitatively and quantitatively analyzes the effects and problems of chinese favorable land price policy on photovoltaics in examining the favorable land price policy in china this study develops a multiple linear regression model to study the effects of favorable land price policy on photovoltaic power and photovoltaic industry data used in this research was mainly collected from 20 provinces in china it is found that the development of pv in china has been greatly affected by the favorable land price policy in the end it is highly recommended that favorable land price policy should be continued for renewable energy systemic deficiencies can be overcome through continual reform and innovation of mechanisms

how biofuel policies backfire misguided goals inefficient mechanisms and political ecological blind spots abstract the development of an economically viable biofuel industry rests on strong state subsidies for production and processing creation of markets through government procurement fuel blending mandates price controls as well as foreign trade tariffs and quotas and multiple interventions in agricultural ecological and other regulations we use an approach grounded in agrarian political economy to critically analyze the literature on how biofuel policies interact with broader production trade and agro ecological processes we focus on policies involving the most prominent crops in the places where biofuel production has advanced the most i e usa brazil and the eu but also extend analysis to their relations with broader transformations in production commercial and even governance practices around the world we investigate the political and economic interests driving biofuel policies and how these set the terms in which state interventions and policies are conceived and implemented we find that these are not developed and implemented according to environmental or inclusive pro poor development purposes but according to state interests in energy security and its intersection with a tense alliance between corporate sectors rendering many policy mechanisms ineffective or even outright counterproductive to effectively facilitate more socially and environmentally sustainable energy production and agricultural practices

the new competition for land food energy and climate change abstract the paper addresses the new competition for land arising from growing and changing demand for food when combined with increasing global demand for transport energy under conditions of declining petro chemical resources and the urgent need to reduce greenhouse gas emissions the paper starts from the premise of a food energy and environment trilemma tilman et al 2009 where all demands to expand the area of cultivated land present high risks of increasing the carbon footprint of agriculture having reviewed the main drivers of demand for food and for liquid transport fuels the paper weighs the controversies surrounding biofuels arising from food price spikes the demand for land and consequent direct and indirect land use change it suggests that we need a more complex and geographically differentiated analysis of the interactions between direct and indirect land use change the paper then reviews evidence of land availability and suggests that in addition to technical availability in terms of soil water and climate political social and technological factors have significantly shaped the competition for land in different global regions particularly the three major biofuel producing ones of the usa brazil and europe this point is further developed by reviewing the different innovation pathways for biofuels in these three regions the main conclusion of this review is firstly that any analysis requires an integrated approach to the food energy environment trilemma and secondly that strategic political direction of innovation and sustainability regulation are required to bring about major shifts in agriculture leading to sustainable intensification of cultivation royal society 2009 rather than the continued expansion of cultivated area the consequent perspective is one of considerable global variety in technologies agricultural productive systems and use of natural resources this contrasts sharply with the world of a dominant global and integrated technology platform based on petro chemicals to which we have become accustomed

on the trade off between the future benefits and riskiness of r d a bondholders perspective abstract existing studies on the value relevance of r d tend to overstate the r d benefits and shed little light on the trade off between the r d benefits mean effect and their riskiness variance effect this study shows that the variance effect of r d is on average more significant than their mean effect in bond valuation hence for creditors the r d risk dominates their benefits furthermore this study documents that r d measures alone explain approximately 80 of cross sectional variations in bond ratings and risk premium these findings contribute to the debate over r d accounting and the bond pricing literature

a world away and close to home the multi scalar making of indonesia s energy landscape abstract indonesia is the world s largest producer of palm oil a feedstock for agrofuels and an important source of direct nutritional energy for human consumption the country is also an important global supplier of coal petroleum and natural gas while per capita fossil energy consumption is relatively low for biomass and fossil fuel based energy indonesia has been transforming its energy landscape in order to provide for foreign demand the landscape both in literal and in the figurative sense simultaneously forms and is formed by the material resource flows required for society s biophysical reproduction i e the social metabolism in the context of the ongoing energy transition both are subject to change in our analysis of indonesia s palm oil production we find that the drivers shaping the country s resource use as well as its energy landscape are located at a spatial temporal and functional distance from where they take effect the energy landscape and resource use patterns are formed across levels of scale from the subnational to the global energy policy confined to the framework of the sovereign nation state cannot effectively address the complex drivers of increasingly detrimental environmental change associated with energy transitions nor can it trigger a sustainability transition

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

sustainability criteria for bioenergy systems results from an expert survey abstract environmental impacts associated with the use of fossil fuels rising prices potential limitations in supply and concerns about regional and national security are driving the development and use of biomass for bioenergy biofuels and bioproducts however the use of biomass does not automatically imply that its production conversion and use are sustainable in order to operationalize sustainability assessments of biomass systems it is crucial to identify critical criteria but keep their number and measurement at a manageable level the selection of these criteria can vary depending on individual s expertise geographical region where they work and spatial scale they are focused on no clear consensus has yet emerged on what experts consider as critical indicators of sustainability objectives of this paper were to analyze how key experts perceive the 35 sustainability criteria for bioenergy found in emerging sustainability assessment frameworks and to identify levels of agreement and uncertainty experts were asked to rate the criteria for attributes of relevance practicality reliability and importance perceptions of the importance of the 35 criteria varied among the experts surveyed only two criteria energy balance and greenhouse gas balance were perceived as critical by more than half of the respondents social criteria and locally applied criteria were generally ranked low for all four attributes seven of the 12 criteria scored as most important focused on environmental issues four were social and only one was economic of the 12 most important criteria seven were ranked low in practicality and reliability indicating that mechanisms to assess a number of important criteria need to be developed the spatial scale the experts worked at and their profession explained most of the differences in importance ranking between experts while regional focus had minimal effect criteria that were ranked low for importance were characterized by a lack of consensus suggesting the need for further debate regarding their inclusion in sustainability assessments outcomes of the survey provide a foundation for further discussions and development of sustainability assessments for bioenergy systems and may also provide a basis for assessing individual bioenergy projects within their specific geographic ecological societal and technological context and scale

monetary restraint and the exchange rate this paper examines the short run response of the exchange rate and the level of interest rates to an unanticipated change in monetary policy l in particular a sudden reduction in the rate of monetary expansion is postulated in an economy with a floating exchange rate will the exchange rate overshoot its long run equilibrium path as in the case of a discrete change in the nominal money stock will interest rates traditional indicators of monetary conditions rise in response to this move towards monetary restraint despite a growing literature on the determination of exchange rates and a general acceptance of the key role of monetary policy in influencing the foreign exchange market this particular question has not received much attention this is probably because authors have preferred to examine the normative question of optimal exchange market intervention policy 2 in section i we take the simplest case where the exchange rate is determined by the actions of speculators with perfect foresight or equivalently of riskneutral speculators with rational expectations the long run equilibrium or steady state path where all prices adjust instantaneously is contrasted with the exchange rate path consistent with momentary equilibrium subject to the slow adjustment of some domestic prices we show that this latter path which will be referred to as the momentary equilibrium path or where there is no risk of confusion simply as the equilibrium path need not overshoot the steady state path nevertheless the nominal interest rate will always fall in this case in section ii we show that risk aversion on the part of speculators is likely to reduce the incidence of overshooting and should moderate the tendency of the interest rate to fall 3 although they are still allowed myopically rational expectations speculators in section iii make transitory errors in forecasting the long run equilibrium this behaviour can lead to the intuitively plausible pattern of an initial increase in nominal interest rates and a gradual rather than sudden response of the exchange rate this discussion of a variety of models allows an interplay between theory and practical experience on the one hand doubt is cast on the realism of certain models which give implausible results while on the other hand models that pass the test of plausibility provide an insight into the forces governing the reaction of financial market variables to policy change

on the use of instrumental variables in accounting research abstract instrumental variable iv methods are commonly used in accounting research e g earnings management corporate governance executive compensation and disclosure research when the regressor variables are endogenous while iv estimation is the standard textbook solution to mitigating endogeneity problems the appropriateness of iv methods in typical accounting research settings is not obvious drawing on recent advances in statistics and econometrics we identify conditions under which iv methods are preferred to ols estimates and propose a series of tests for research studies employing iv methods we illustrate these ideas by examining the relation between corporate disclosure and the cost of capital

the spatio temporal dynamics of ethanol gasoline price ratio in brazil abstract we use an innovative method to analyze the spatio temporal evolution of the ethanol gasoline price ratio to end consumers in brazil this model allows estimating the distribution of prices throughout the country using a continuous space model estimated by bayesian methods we use data from the national petroleum natural gas and biofuels agency s price survey system a weekly sample of 10 of fuel suppliers in brazil to estimate continuous projections of the price ratio for the entire country for the 2007 2014 period we use this model to build an indicator of ethanol advantage in the country and show how this advantage has declined since 2009

financing constraints and the cost of capital evidence from the funding of corporate pension plans we investigate the relation between firms weighted average cost of capital and internal financial resources using mandatory pension contributions as a proxy for internal financial resources rauh 2006 documents a negative association between mandatory pension contributions and capital expenditures we find that an increase in mandatory pension contributions increases the cost of capital but only for firms facing greater external financing constraints our results suggest that firms cost of capital is an intervening variable that can explain rauh s finding that mandatory pension contributions i e internal financing constraints result in foregone investment overall we provide evidence consistent with recent studies rauh 2006 almeida and campello 2007 that conclude that financial market frictions affect real economic activity and in particular corporate investment the author 2011 published by oxford university press on behalf of the society for financial studies all rights reserved for permissions please e mail journals permissions oup com oxford university press

land tenure and property rights theory and implications for development policy this article explores the nature of property rights systems their evolution and their effect on resource allocation it is argued that certain institutional arrangements for land rights have evolved in order to reduce uncertainty and increase efficiency in credit as well as in land markets of particular relevance to developing countries the article emphasizes the contribution of public sector infrastructure to effective land rights systems an appendix to the article presents a formal model analyzing the effects of security of land rights on land prices the intensity of cultivation and the use of credit empirical evidence from thailand supports several of the propositions derived from the model

industry effects and appropriability measures in the stock market s valuation of r d and patents this paper examines the stock market s valuation of a firm s innovative activity we estimate the market s relative valuation of firms tangible and intangible assets focusing on knowledge capital in the form of accumulated stocks of r d and patents we tried to improve upon our estimates of the stock market s valuation of knowledge capital embodied in such stocks by bringing in measures of the appropriability environment facing a firm from the yale survey on industrial research and development the responses to survey questions about the effectiveness of patents as a mechanism for protecting the returns from innovation turn out to be of some use there is evidence of an interaction between industry level measures of the effectiveness of patents and the market s valuation of a firm s past r d and patenting performance as well as its current r d moves we find no evidence however that other appropriability mechanisms differ enough across industries to leave measurable traces in our data the structure of the yale survey makes it possible to estimate the sampling error in the appropriability measures derived from it this information was used by us in an errors in variables context but with little success in the absence of r d variables our estimates imply that a two standard deviation increase in our index of patent effectiveness would raise the value of a patent held by our average firm from 0 4 million to 1 0 million when r d variables are introduced into the equations the patents variables become insignificant r d expenditures are a better measure of input to the innovative function of firms than patents are of its output but we estimate that the same experiment would induce changes in q of between 10 and 27 percent for the average firm approximately doubling the market s valuation of this kind of capital this abstract was borrowed from another version of this item

can we meet targets for biofuels and renewable energy in transport given the constraints imposed by policy in agriculture and energy abstract the deployment of biofuels is significantly affected by policy in energy and agriculture in the energy arena concerns regarding the sustainability of biofuel systems and their impact on food prices led to a set of sustainability criteria in eu directive 2009 28 ec on renewable energy in addition the 10 biofuels target by 2020 was replaced with a 10 renewable energy in transport target this allows the share of renewable electricity used by electric vehicles to contribute to the mix in achieving the 2020 target furthermore only biofuel systems that effect a 60 reduction in greenhouse gas emissions by 2020 compared with the fuel they replace are allowed to contribute to meeting the target in the agricultural arena cross compliance which is part of eu common agricultural policy dictates the allowable ratio of grassland to total agricultural land and has a significant impact on which biofuels may be supported this paper outlines the impact of these policy areas and their implications for the production and use of biofuels in terms of the 2020 target for 10 renewable transport energy focusing on ireland the policies effectively impose constraints on many conventional energy crop biofuels and reinforce the merits of using biomethane a gaseous biofuel the analysis shows that ireland can potentially satisfy 15 of renewable energy in transport by 2020 allowing for double credit for biofuels from residues and ligno cellulosic materials as per directive 2009 28 ec through the use of indigenous biofuels grass biomethane waste and residue derived biofuels electric vehicles and rapeseed biodiesel

economic potential of biomass based fuels for greenhouse gas emission mitigation use of biofuels diminishes fossil fuelcombustion thereby also reducing net greenhousegas emissions however subsidies are neededto make agricultural biofuel productioneconomically feasible to explore the economicpotential of biofuels in a greenhouse gasmitigation market we incorporate data onproduction and biofuel processing for thedesignated energy crops switchgrass hybridpoplar and willow in an u s agriculturalsector model along with data on traditionalcrop livestock production and processing andafforestation of cropland net emissioncoefficients on all included agriculturalpractices are estimated through crop growthsimulation models or taken from the literature potential emission mitigation policies ormarkets are simulated via hypothetical carbonprices at each carbon price level theagricultural sector model computes the newmarket equilibrium revealing agriculturalcommodity prices regionally specificproduction input use and welfare levels environmental impacts and adoption ofalternative management practices such asbiofuel production results indicate no rolefor biofuels below carbon prices of 40 perton of carbon equivalent at these incentivelevels emission reductions via reduced soiltillage and afforestation are more costefficient for carbon prices above 70 biofuels dominate all other agriculturalmitigation strategies

sugar rush prospects for a global ethanol market in 2005 the major economies of the world including the g8 and 5 developing nations mexico india brazil china and south africa along with the united nations the international energy agency and the european union launched the global bioenergy partnership to discuss ways to promote the sustained use and production of biofuels around the globe reflecting growing concerns for finding economically viable substitutes for petroleum this paper examines whether and if a vibrant global market in biofuels based on sugarcane based ethanol is economically feasible the paper finds that while there is already international trading in biofuels it is highly limited compared with its potential in the current climate of accelerating fossil fuel prices biofuels represent an increasingly attractive displacement for some of our fossil fuel addiction not only do they substitute for petrol but they also produce lower emissions the paper finds that sugarcane ethanol could make an important contribution to substituting for a portion of petroleum and also offer potential benefits for international development

the semiflexible almost ideal demand system abstract the concept of a semiflexible functional form is applied to the almost ideal ai demand system this yields a demand model that is more parsimonious than standard ones while preserving a degree of flexibility that satisfies the curvature property of concavity of the underlying expenditure function at least locally and that preserves the desirable properties of the ai model aggregation across consumers and nonlinearity of the engel curves the model is illustrated with an application to a relatively large demand system emphasizing food consumption

monetary expansion and real exchange rate dynamics this paper examines the effect of a change in the rate of monetary expansion on the dynamics of the real exchange rate under fully flexible domestic prices and a floating exchange rate the model is similar in structure to an ealier paper by calvo and rodriguez the main difference being that in our model consumers have an infinite planning horizon and long run perfect foresight one of the main findings is that an increase in the rate of monetary expansion has the impact effect of creating a real appreciation of the exchange rate and a deterioration of the balance of payments contrary to the results of calvo and rodriguez

historical experiences with flexible exchange rates a simulation of common qualitative characteristics abstract this paper develops an analytical model of price and exchange rate determination which formalizes the evolution of the money supply expectations process calibration and simulation of the model demonstrates its ability to replicate certain stylized facts that characterize 17 historical experiences with flexible currency prices under inflationary conditions furthermore the model proves capable of tracing actual prices and exchange rates in a number of selected historical cases rather than treating each experience as a singular historical event the paper thus constitutes a step towards a general account of the rich experience with flexible exchange rates during the last two centuries

a stochastic competitive r d race where winner takes all the paper considers a race among multiple firms that compete over the development of a product the first firm to complete the development gains a reward whereas the other firms gain nothing each firm decides how much to invest in developing the product and the time it completes the development is a random variable that depends on the investment level the paper provides a method for explicitly computing a unique nash equilibrium parametrically in the interest rate for a given interest rate the nash equilibrium is determined in time that is linear in the number of firms the structure of the solution yields insights about the behavior of the participants furthermore an explicit expression for a unique globally optimal solution is obtained and compared to the unique nash equilibrium

economic and environmental impact marginal analysis of biorefinery products for policy targets a simple biofuel production system can be first examined for its policy compliance in terms of ghg emission reduction target relative to fossil based counterparts more integrated and optimised biorefinery systems with polygeneration can then be evolved with the aid of graphical analysis of marginal emission savings vs additional economic margins this bottom up approach helps to achieve greater ghg emission cut by integrated systems design and thereby setting a more stringent benchmark to support policies towards achieving climate change mitigation goals the combined economic value and environmental impact analysis is a multi level methodology that can be used to represent biorefinery system performances as an aggregate of differential economic and environmental impact margins of biorefinery products the methodology is extended in this paper to support process integration strategies that allow achieving policy compliance of biorefinery products in terms of ghg emission savings an economic and environmental impact profile of the products is introduced for a graphical visualisation of economic costs and values as well as deficits and surpluses in environmental impact savings the effectiveness of the extended methodology has been demonstrated using a jatropha based biorefinery system converting jatropha seed into biodiesel glycerol and cake as a case study the biodiesel produced can achieve 53 emission cut while glycerol and cake can achieve an emission cut by 57 by displacing similar functionality fossil based products

bio energy policies in a global context abstract against the background of an increasing global demand for bio energy the need for sustainability standards and a certification system ensuring sustainable production and trade has grown rapidly nevertheless there is currently no specific forum for discussions on how to deal with biomass trade at the multilateral level distortions in agricultural and energy trade regimes the myriad of standards and the lack of a clear biomass classification in the multilateral trade regime suggest that bio energy products may not deliver sustainable development gains for all trading partners this paper analyses then the global impact of bio energy policies on biomass production and trade paying particular attention to sustainable development in the bio energy sector it examines how a possible reduction and elimination of trade barriers as well as a phasing out of trade distorting support measures would contribute to the development of a global sustainable bio energy market

innovation system strengths and weaknesses in progressing sustainable technology the case of swedish biorefinery development based on the combination of economic challenges and uncertain policy conditions in the united states european union and elsewhere the development of advanced biorefineries has progressed slower than anticipated this has delayed the transition to a more sustainable and less carbon intensive economy in this article we adopt the technological innovation system tis approach to analyze advanced biorefinery development in sweden a front runner country in current development the analysis highlights a number of system strengths e g long term research funding significant research infrastructure strong actor networks that have contributed to developing the swedish tis but also important system weaknesses e g weak coordination among ministries lack of industrial absorptive capacity unclear roles inhibiting it the article highlights a combination of four policy measures that build on the system strengths to address the system weaknesses a the implementation of a deployment policy for creating domestic niche markets b improved policy timing and more structured coordination among different governmental agencies c the provision of stronger incentives for mature industries to invest in rd and d improved organization and financing of existing research infrastructure in addition to the empirical contribution the article contributes with novel insights into the tis framework by highlighting the dynamics between system strengths and weaknesses and suggests that system strengths should be better emphasized in future tis studies

european union leadership in biofuels regulation europe as a normative power the rapid emergence of the european union eu as a leader in global environmental politics has led many scholars to argue in favour of the eu being a normative power in international relations this paper critically examines the eu s biofuels policy and evaluates whether its attempts to lead by example and shape international practice in this field could support such arguments europe s biofuel policies are evaluated through a sustainable development lens so as to determine the extent to which it has embraced a holistic approach to sustainability while not dismissing that the identity of the eu is indeed an explanatory factor and that normative intentions may well be regarded as a motivating force this study argues that an interest based perspective on international environmental regulation offers a supplementary view of how an actor s preferences for an international regime are shaped by erecting barriers aimed at shielding its own inefficient domestic biofuels production the eu is in essence placing trade competitiveness and economic growth above environmental protection thus permitting sustainability concerns to be addressed only in part

international bioenergy trade a review of past developments in the liquid biofuel market policies aimed to promote biofuels locally had tremendous effects on global market developments across the past decade this article develops insights into the interaction of these policies and market forces via a comprehensive collection and analysis of international production and trade data it shows that world biofuel production and trade has grown exponentially from below 30 pj in 2000 to 572 pj in 2009 for biodiesel from 340 pj in 2000 to over 1540 pj in 2009 for fuel ethanol the eu has dominated world biodiesel whereas the us and brazil have led fuel ethanol production world net biofuel trade reached 120 130 pj in 2009 and was directed towards the most lucrative markets for biodiesel this has been the eu whose imports rose to 92 pj in 2008 and remained at 70 pj in 2009 regarding fuel ethanol both the us and the eu have been prime destinations for competitively priced exports the vast majority of which originated in brazil international biofuel trade is both supply and demand driven the demand side was shaped by support policies which generally increased the domestic market value of biofuels trade developed wherever these policies prices were not accompanied by respective measures it is found that import duties largely influenced trade volumes whereas trade routes were mainly driven by tariff preferences trade regimes appear to have been designed and adapted unilaterally along national interests causing market disruptions trade inefficiencies and disputes to avoid these it is important to explicitly consider international trade implications of national trade policies a prerequisite is to improve the understanding of the underlying complex and interwoven links within the market the current lack of adequate homogeneous international reporting of biofuel production and trade statistics could be bridged via internationally standardized custom clarifications trade factor interrelations also need to be investigated further

promotion of biofuel consumption in the transport sector an eu 27 perspective abstract the european union s eu directive 2003 30 ec 1 set an objective of reaching a 5 75 share of renewable energy as a proportion of the total energy consumption of the transport sector by 2010 as all the member states mss of the eu 27 were obliged to comply with this directive different public policy measures were developed and implemented to promote the use of biofuels in transport biofuels being the main renewable energy source res in this sector in this article we review the public measures undertaken in the eu 27 and show how these measures primarily involve tax incentives and biofuel blending mandates on fuel sales all countries with the exception of finland introduced tax incentives of various types to promote the use of biofuels while 18 mss also implemented biofuel blending mandates through the passing of legislation relating to this matter

a review of social sustainability considerations among eu approved voluntary schemes for biofuels with implications for rural livelihoods the rapid expansion of biofuel production and consumption has raised concerns over the social and environmental sustainability of biofuel feedstock production processing and trade the european union eu has thus balanced its commitment to biofuels as one option for meeting its renewable energy targets with sustainability criteria for economic operators supplying biofuels to member states seven voluntary eu sustainability schemes were approved in july 2011 as a means to verify compliance while mandated sustainability criteria have a strong environmental focus a number of these voluntary schemes have social sustainability as a significant component of the requirements put forward for achieving certification as several of these voluntary schemes are incipient thereby limiting evidence on their effectiveness in practice this analysis is based on a comparative analysis of the substantive content or scope of these schemes and the likely procedural effectiveness of the same findings show that while some schemes have considerable coverage of social sustainability concerns poor coverage of some critical issues the presence of schemes lacking any social sustainability requirements and gaps in procedural rules are likely to undermine the likelihood that social sustainability is achieved through these schemes or the eu sustainability policies lending credibility to them

opportunities and barriers for international bioenergy trade recently the international trade of various bioenergy commodities has grown rapidly yet this growth is also hampered by some barriers the aim of this paper is to obtain an overview of what market actors currently perceive as major opportunities and barriers for the development of international bioenergy trade the work focuses on three bioenergy commodities bioethanol biodiesel and wood pellets data were collected through an internet based questionnaire the majority of the 141 respondents had an industrial background geographically two thirds were from mainly western europe with other minor contributions from all other continents results show that import tariffs and the implementation of sustainability certification systems are perceived as potentially major barriers for the trade of bioethanol and biodiesel while logistics are seen mainly as an obstacle for wood pellets development of technical standards was deemed more as an opportunity than a barrier for all commodities most important drivers were high fossil fuel prices and climate change mitigation policies concluding to overcome some of the barriers specific actions will be required by market parties and policy makers import tariffs for biofuels could be reduced or abolished linked to multinational trade agreements and harmonization including provisions on technical standards and sustainability requirements