IREF - Institute for Research in Economic and Fiscal issues
Fiscal competition and economic freedom
The global use of modern biofuels for transport is relatively recent and underwent rapid growth since the turn of this century. However, its performances in economic, energetic and environmental terms have recently been seriously questioned. Large-scale production of this renewable energy seems to have more inconveniences than advantages. Still, huge investments went to this sector so that any policy change away from this technological path will be costly.
Unless new, more efficient generations of biofuels are made quickly available, those costs will nonetheless have to be faced for the sake of economic efficiency as well as of environmental quality.