ABSTRACT
Policy instruments are vital to the development of strong biofuel industries. If governments and others wish to significantly expand production and use of these fuels at the domestic and global levels, they will need to have an effective ‘toolbox’ of wide-ranging policy strategies. The most common policies supporting biofuels today are blending mandates and exemptions from fuel taxes. Other policy instruments have included loan guarantees; tax incentives for agriculture and forestry, consumers and manufacturers; preferential government purchasing policies; and research, development and demonstration funding for current and next-generation biofuels and technologies. 1
