Financial and Economic Assessment of Biodiesel Production and Use in India
Gunatilake, Herath | November 2011
Abstract
Biofuels have been receiving increased attention of policy makers because of their ability to enhance energy security, reduce greenhouse gas emissions, and promote inclusive rural development. This paper shows that prevailing administered prices do not provide adequate incentives to produce biodiesel in India. Social cost–benefit analysis, however, shows that biodiesel production from Jatropha and Pongamia is economically viable. While explaining the reasons for failure in taking off the biodiesel sector in India, the paper argues that public sector interventions are necessary to correct existing market non-market and institutional failures that prevent development of biodiesel markets..
Citation
Gunatilake, Herath. 2011. Financial and Economic Assessment of Biodiesel Production and Use in India. © Asian Development Bank. http://hdl.handle.net/11540/1415. License: CC BY 3.0 IGO.Keywords
Alternative Energy Development
Asian Development Bank
Development
Development Cooperation
Rural Development Projects
Energy Development Finance
Rural planning
Aid coordination
Industrial projects
Infrastructure projects
Natural resources policy
Educational development
Development policy
Energy Demand
Alternative energy program
Domestic Energy
Communication in rural development
Communication in community development
Economic development projects
Development banks
Economic forecasting
Environmental auditing
Cumulative effects assessment
Human rights and globalization
Rural manpower policy
Biogas
Biomass chemical
Biomass gassification
Biomass energy
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