Biofuels and WTO Disciplines
Journal
Aussenwirtschaft: schweizerische Zeitschrift für internationale Wirtschaftsbeziehungen
ISSN
0004-8216
Type
journal article
Date Issued
2008-03
Author(s)
Abstract
Given the sharp rise in crude oil prices and growing awareness of climate change, the potential of biofuels, particularly of bioethanol, has become an ubiquitous topic of public debate and has induced ambitious policy initiatives. The latter are mostly paired with protectionist measures as the examples of the European Union and the United States show, where domestic producers of energy crops are put at an advantage thanks to subsidisation, direct payments and/or favourable tax schemes.Moreover, the EU is working out a
mandatory certification scheme for ethanol imports, imposing social and environmental standards which constitute another hurdle for more efficiently produced ethanol originating in the Southern hemisphere. A similar path is taken by Switzerland's revised mineral
oil tax law which imposes social and environmental criteria which might not only result in a ban of biofuels produced from palm oil, soy and grain, but will also set obstacles for sugarcane-based ethanol which is currently said to be the most eco-efficient biofuel.This paper
explores where these policy initiatives are at odds with or at least in a grey area of WTO regulations, and where they disrupt markets without necessarily generating environmental benefits.The findings of our study lead to the conclusion that markets should play a stronger
role in expanding the use of biofuels, since many risks affiliated with the biofuel production are caused rather than alleviated by interventionist practices.
mandatory certification scheme for ethanol imports, imposing social and environmental standards which constitute another hurdle for more efficiently produced ethanol originating in the Southern hemisphere. A similar path is taken by Switzerland's revised mineral
oil tax law which imposes social and environmental criteria which might not only result in a ban of biofuels produced from palm oil, soy and grain, but will also set obstacles for sugarcane-based ethanol which is currently said to be the most eco-efficient biofuel.This paper
explores where these policy initiatives are at odds with or at least in a grey area of WTO regulations, and where they disrupt markets without necessarily generating environmental benefits.The findings of our study lead to the conclusion that markets should play a stronger
role in expanding the use of biofuels, since many risks affiliated with the biofuel production are caused rather than alleviated by interventionist practices.
Language
English
Keywords
biofuels
WTO
like products
subsidisation
tax schemes
certification
Swiss mineral oil tax law
HSG Classification
contribution to scientific community
Refereed
No
Publisher
Rüegger
Publisher place
Zürich
Volume
63
Number
1
Start page
7
End page
40
Pages
34
Subject(s)
Division(s)
Eprints ID
43758
File(s)![Thumbnail Image]()
Loading...
Name
007_042_Bruehw_Hauser_AWI_1_08[1].pdf
Size
292.43 KB
Format
Adobe PDF
Checksum (MD5)
4645477a894986d9e0414e141ce702bf