ABSTRACT
Introduction Rising prices for fossil fuels (especially crude oil), energy security, climate change and rural development have been main drivers for advocating alternative sources of bioenergy. Policy plays a key role in bioenergy markets worldwide because biofuels cannot be yet competitive with fossil fuels. Governments use subsidy, tax breaks or other incentives to promote investments with the aim of reducing, through blending, fossil fuel use. Such government incentives need however to consider both environmental and social conditions to ensure the long-term viability of this strategy.
