Is there a role for biofuels in promoting energy self sufficiency and security? A CGE analysis of biofuel policy in Thailand

Wianwiwat, Suthin and Asafu-Adjaye, John (2013) Is there a role for biofuels in promoting energy self sufficiency and security? A CGE analysis of biofuel policy in Thailand. Energy Policy, 55 543-555. doi:10.1016/j.enpol.2012.12.054


Author Wianwiwat, Suthin
Asafu-Adjaye, John
Title Is there a role for biofuels in promoting energy self sufficiency and security? A CGE analysis of biofuel policy in Thailand
Journal name Energy Policy   Check publisher's open access policy
ISSN 0301-4215
1873-6777
Publication date 2013-04
Year available 2012
Sub-type Article (original research)
DOI 10.1016/j.enpol.2012.12.054
Volume 55
Start page 543
End page 555
Total pages 13
Place of publication London, United Kingdom
Publisher Elsevier
Collection year 2014
Language eng
Abstract Given the rising price of crude oil, some developing countries including Thailand are looking towards developing their domestic renewable energy resources, in particular biofuels. However, there are concerns about the possible adverse effects such a policy strategy would have on key variables such as sectoral output, land allocation and the effects of prices, particularly food prices. This study develops a computable general equilibrium (CGE) model of the Thailand economy that features enhancements of the energy sector and uses it to analyze the government’s recent renewable energy development plan. This plan aims to increase domestic energy use from renewable sources to replace fossil fuel imports. The study simulated specific policies contained in the plan. Among other things, we found that promoting biofuel use causes a rapid increase in the price of biofuel and biofuel feedstock in the short-run, whereas these prices only increase slightly in the long-run due to more elastic supplies. The prices of food and other products marginally increase, implying that food security is not undermined by the policy. On the basis of the findings, the study recommends a review of some of the targets because they were found to be rather high, and a phasing in of others.
Keyword CGE model
Energy policy
Biofuels
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Copyright © 2012 Elsevier Ltd. All rights reserved.

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2014 Collection
School of Economics Publications
 
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Created: Thu, 17 Jan 2013, 10:21:59 EST by Alys Hohnen on behalf of School of Economics