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Mitigation and Adaptation Strategies for Global Change

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01-02-2014 | Original Article

Developing biofuels industry in small economies: Policy experiences and lessons from the caribbean basin initiative

Authors: Kalim U. Shah, George Philippidis, Hari Bansha Dulal, Gernot Brodnig

Published in: Mitigation and Adaptation Strategies for Global Change | Issue 2/2014

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Abstract

With increasing concerns about rising energy demand and cost, diminishing oil reserves, and climate change, Central American and Caribbean (CAC) nations have the opportunity to become producers of low-carbon sustainable biofuels for domestic consumption and foreign exchange earnings. While the region has a number of comparative advantages for developing a vibrant biofuels sector, including favorable climate and significant agricultural experience, the experience under the favorable Caribbean Basin Initiative (CBI) has exposed significant technical and non-technical barriers that must be overcome. Using information compiled through interviews with industry executives, government policy makers and civil society stakeholders, we provide a critical analysis of this experience focusing on non-technical barriers to investment. Survey results suggest that political uncertainty, poor regulatory frameworks, and lack of institutional commitment and business incentives are the main non-technical barriers. Having laid out the challenges, we propose potential policy positions to stimulate growth of the regional biofuels sector. Results point to the need to prioritize enhancing national legislation, developing risk prevention plans, creating supply and demand side incentives and increasing multilateral collaboration. While these findings are derived from the Caribbean Basin experience, they may also be applicable to small economies in other regions that are considering policies for biofuels industry development.

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Estimates are based on basic resource potential and assume that it makes economic sense to convert such feedstocks to energy.

Bagasse is the fiber left over after the juice has been squeezed out of sugarcane stalks. As biomass, it is used to manufacturing cellulosic ethanol.

Vinasse is a liquid residue generated during sugarcane ethanol distillation that represents an environmental concern for the ethanol industry. It is acidic with high biological oxygen demand.

Information about Caribbean Central American Action (CCAA) can be obtained at http://www.ccaa.org. Reports on CCAA’s Annual Miami Conference, listing these forums and speakers are also available online.

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Title: Developing biofuels industry in small economies: Policy experiences and lessons from the caribbean basin initiative
Authors: Kalim U. Shah
George Philippidis
Hari Bansha Dulal
Gernot Brodnig
Publication date: 01-02-2014
Publisher: Springer Netherlands
Published in: Mitigation and Adaptation Strategies for Global Change / Issue 2/2014
Print ISSN: 1381-2386
Electronic ISSN: 1573-1596
DOI: https://doi.org/10.1007/s11027-012-9437-8

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