Sweetness and Power – Public Policies and the ‘Biofuels Frenzy’

Sweetness and Power – Public Policies and the ‘Biofuels Frenzy’ In the last decade, there has been a huge policy‐led expansion in biofuels production and consumption. This paper presents some of the findings of a funded research project which has sought to identify the drivers of biofuels policies over this period. It focuses on the EU, US and Brazil which, together, represent about 90 per cent of global biofuels markets. Biofuels policies have three key drivers: as a partial substitute for fossil fuels, to lower greenhouse gas emissions; as a way of improving energy security, by diversifying away from fossil fuels and from the limited number of countries with fossil‐fuel reserves; and as a means of promoting rural development, given the opportunities offered by the production of biofuel feedstocks and their processing into biofuels. One particular challenge for both the EU and US has been to create and sustain a broad coalition of stakeholder interests in support of biofuels and biofuel policies. Both have sought to promote ‘conventional’ biofuels now, whilst trying to aid the development of ‘advanced’ biofuels industries that will address problems with existing technologies. The continued failure to deliver significant quantities of advanced biofuels raises questions for biofuels policymakers going forward, not least dealing with the downsides of conventional biofuels that, so far, have not been mitigated by a successful transition to advanced biofuels.     

‘Second-generation’ MVs and the evolution of the Green Revolution: the case of Central Luzon, 1966–90

By now new modern rice varieties (MVs) with multiple pest and disease resistance have completely replaced early MVs, such as IR5 and IR8, except in a few areas of Asia. This study attempts to identify the changing impacts of ‘first-generation’ and ‘second-generation’ MVs on productivity in rice farming by estimating the yield function, while correcting selectivity bias arising from the choice of varieties. For this purpose, we used farm-level survey data collected for eleven cropping seasons in Central Luzon in the Philippines from 1966 to 1990. We found that while the yield advantage of first-generation MVs over traditional varieties was limited, the yield-increasing effect of second-generation MVs over first-generation MVs was highly significant. In particular, the adoption of improved MVs significantly contributed to yield growth under the irrigated condition and during the dry season. Thus, we conclude that the Green Revolution would not have been revolutionary without the development and the diffusion of second-generation MVs with multiple pest and disease resistance.     

Re‐evaluating the Harbinson Proposal – Prospects for the EU25: A Note

In this study, we use the Harbinson Proposal and July Framework to compare a ‘likely’ Doha scenario with a realistic baseline. The novelty of this study is that we focus exclusively on the trade‐led welfare impacts in selected EU member states. The important features of this note are the: (i) usage of the latest Global Trade Analysis Project (version 6) data; (ii) focus on EU25 regions incorporating all major Common Agricultural Policy instruments and reforms; and (iii) inclusion of binding tariff overhangs into the Harbinson tariff reductions. Results show the damping effects of tariff‐binding overhangs on welfare outcomes. This and other factors which limit the gains to liberalisation mean that the EU25 only realises 10% of its long‐run welfare gain potential, as defined by complete liberalisation.