Biofuel policies : what can Zambia learn from leading biofuel producers

Matakala, Litiya (2009-03)

Thesis (MDF (Development Finance))--University of Stellenbosch, 2009.

Thesis

ENGLISH ABSTRACT: Price volatility and high dependency on imported petroleum fuel has prompted the Zambian government to look into renewable fuels as part of an energy diversification program. With growing global interest in biofuels as a transportation fuel, the Zambian government intends to introduce bioethanol and biodiesel as renewable fuels in the transportation sector. While it seems feasible to produce both the feedstocks and biofuels to meet local demand, a regulatory framework and industry support mechanisms have not yet been formulated. The policy and regulatory frameworks encompass a multitude of actors, networks and institutions all playing distinct and important roles. Incorporating the differing interests of all these stakeholders is an involving process that requires detailed analysis of agriculture, environmental, energy, socioeconomic and taxation policies. This study attempts to contribute to the biofuels policy formulation process in Zambia. It analyses biofuel policies in leading biofuels producing countries and identifies aspects that the Zambian government should consider incorporating in its own policies to ensure a viable biofuels industry. Biofuel policies in Brazil, Germany and the United States of America were analysed using a detailed case study and extensive literature review. Furthermore, a detailed analysis of the Zambian agriculture sector and the demand for petroleum fuel puts into context the potential demand and challenges likely to be faced. By understanding the history and development of biofuels in the case study countries, best practices, problems faced, policy innovations and industry support mechanisms were identified to inform policy formulation in Zambia. This does not only provide valuable insights and lessons but also ensures that time and resources are not wasted by reinventing the wheel. The comparative analysis of policies and support mechanisms in the three case study countries showed that articulating a clear policy objective, government support in the form of subsidies, wide stakeholder involvement and industry regulation have all played a critical role in the development of the industry. However, the extent to which all these factors have helped to shape the industry in Brazil, Germany and the USA is neither equal nor static. Countries are continuously adapting their policies and support mechanisms to environmental, energy and economic conditions.

AFRIKAANSE OPSOMMING: Die onbestendigheid van pryse en die groot mate van afhanklikheid van ingevoerde petroleumbrandstof het die Zambiese regering aangespoor om ondersoek in te stel na hernubare brandstof as deel van 'n energiediversifiseringsprogram. In die lig van die groeiende globale belangstelling in biobrandstof as vervoerbrandstof, beplan die Zambiese regering om bioetanol en biodiesel as hernubare brandstof in die vervoersektor te begin gebruik. Al lyk dit prakties uitvoerbaar om sowel die voerstof as die biobrandstof te vervaardig om in die plaaslike aanvraag te voorsien, is 'n reguleringsraamwerk en ondersteuningsmeganismes vir die industrie nog nie geskep nie. 'n Menigte rolspelers, netwerke en instellings, wat almal verskillende en belangrike rolle speel, sal betrokke wees by die beleidsformulering en reguleringsraamwerk. Om die uiteenlopende belange van al die betrokke partye in ag te neem is 'n ingewikkelde proses wat sal vereis dat 'n uitvoerige analise gemaak word van landbou-, omgewings-, energie-, sosio-ekonomiese en belastingbeleidsrigtings. Die doelwit van hierdie studie is om 'n bydrae te lewer tot die formuleringsproses van die biobrandstofbeleid in Zambie. Dit analiseer die biobrandstofbeleid van die vooraanstaande lande wat biobrandstof vervaardig, en identifiseer aspekte wat die Zambiese regering in sy beleid behoort in te sluit om 'n lewensvatbare biobrandstofindustrie te verseker. Die biobrandstofbeleid van Brasilie, Duitsland en die Verenigde State van Amerika (VSA) is geanaliseer met behulp van uitvoerige gevallestudies en 'n grondige literatuurstudie. Verder plaas 'n noukeurige analise van die Zambiese landbousektor en die aanvraag na petroleumbrandstof die potensiele aanvraag en uitdagings wat waarskynlik hanteer sal meet word in konteks. Deur insig te verkry in die geskiedenis en ontwikkeling van biobrandstof in die lande waar die gevallestudies gedoen is, kon die beste gebruike, moontlike probleme, nuwe beleidsrigtings en ondersteuningsmeganismes in die bedryf geidentifiseer word om die beleid in Zambie te help formuleer. Dit bied nie slegs waardevolle insig en leergeleenthede nie, maar verseker ook dat tyd en hulpbronne nie vermors word deur die wiel van voor af uit te vind nie. Die vergelykende analise van die beleidsrigtings en ondersteuningsmeganismes in die drie lande waar die gevallestudies gedoen is, het getoon dat 'n duidelik geformuleerde beleidsdoelwit, ondersteuning van die regering in die vorm van subsidies, die algemene betrokkenheid van belanghebbendes en die regulering van die industrie alles 'n uiters belangrike rol gespeel het in die ontwikkeling van hierdie industrie. Die mate waarin al hierdie faktore die industrie in Brasilie, Duitsland en die VSA help vorm het, het egter gewissel en was nooit staties nie. Lande pas voortdurend hulle beleid en ondersteuningsmeganismes aan by omgewings-, energie- en ekonomiese toestande.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/5748
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