Quarterly Journal of International Agriculture No. 4/07
Biofuels – experiences and perspectives in industrialized and developing countries
Oliver Henniges and Jürgen Zeddies
University of Hohenheim, Germany
Abstract
In many countries biofuels are substantially subsidized through
different political tools. In this paper the development of the biofuel
production in the most important countries USA, Brazil, and Europe are
described. The production costs in these countries are calculated based
upon empiric surveys and compared with each other. Costs for
investment, personnel and feedstock as well as quantities of byproducts
are given in detail. In an international comparison Thailand,
Australia, and China are included, too. The conclusions result in the
finding that under present price-cost-relations only in Brazil
bioethanol is competitive more or less without state subsidies. The
future profitability depends on the further development of technologic
innovations and of the prices for fossil energy as well as of
agricultural feedstuff, in particular maize, wheat, and sugar.
Keywords: biofuels, political support, international competitiveness
JEL: Q 410
Vol. 46 (2007), No. 4: 349-371