Energy security and economics of Indian biofuel strategy in a global context

Herath Gunatilake, David Roland-Holst, Guntur Sugiyarto, Jennifer E. Baka

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

The emergence of biofuel as a renewable energy source offers opportunities for climate change mitigation and greater energy security for many countries. At the same time, biofuel represents the possibility of substitution between energy and food. For developing countries like India, which imports over 75% of its crude oil, fossil fuels pose two risks-global warming pollution and negative economic impacts of oil price hikes. This paper examines India's options for managing energy price risk in three ways: biofuel development, energy effciency promotion, and food productivity improvements. The overall results suggest that biodiesel shows promise as a transport fuel substitute that can be produced in ways that fully utilize marginal agricultural resources and hence promote rural livelihoods. First-generation bioethanol, by contrast, appears to have a limited ability to offset the impacts of oil price hikes. Combining the biodiesel expansion policy with energy effciency improvements and food productivity increases proved to be a more effective strategy to enhance both energy and food security, help mitigate climate change, and cushion the economy against oil price shocks.

Original languageEnglish (US)
Pages (from-to)1-34
Number of pages34
JournalADB Economics Working Paper Series
Volume269
StatePublished - Aug 1 2011

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biofuel
energy
oil price
economics
food
oil
climate change
productivity
India
crude oil
energy source
first generation
renewable energy
food security
economic impact
substitution
fossil fuel
livelihood
import
Food

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Economics and Econometrics
  • Political Science and International Relations

Cite this

Gunatilake, Herath ; Roland-Holst, David ; Sugiyarto, Guntur ; Baka, Jennifer E. / Energy security and economics of Indian biofuel strategy in a global context. In: ADB Economics Working Paper Series. 2011 ; Vol. 269. pp. 1-34.
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Energy security and economics of Indian biofuel strategy in a global context. / Gunatilake, Herath; Roland-Holst, David; Sugiyarto, Guntur; Baka, Jennifer E.

In: ADB Economics Working Paper Series, Vol. 269, 01.08.2011, p. 1-34.

Research output: Contribution to journalArticle

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