chapter  3
33 Pages

Biofuels, biodiesel, and regulations

This chapter presents the intersection between global biofuels initiatives as a fossil fuels substitute in the transportation sector and its relationship with agricultural sector modernization in developing countries. Subsequently, relationships are drawn between food security, the energy market, and economic development strategies. The focus therefore moves from large producers primarily selling in international markets, to medium size companies in developing countries and smallholder producers who are contracted to produce biofuels feedstock. In terms of consumption, the focus is largely on the Western consumers who buy mixed fuels from gas stations and not on the villagers who use biodiesel for small-scale energy generation. This is because the aim is to investigate to what extent the economies of scale and comparative advantages are useful notions when investigating the value proposition of biofuels feedstock production joining the GVC and earning foreign income.