The emerging liquid biofuel market in Argentina: Implications for domestic demand and international trade

Patrick Lamers, Kes McCormick and Jorge Antonio Hilbert

Energy Policy, 2008, vol. 36, issue 4, 1479-1490

Abstract: While the world's transport energy matrix is still strongly linked to limited and heavily polluting fossil fuels, new markets are appearing for the production and use of alternative transport fuels, such as liquid biofuels. Due to an interconnected global economy, such markets today are developing on a global scale with actors looking to meet local as well as potential international demand. The aim of this paper is to describe and evaluate the emergence of markets for liquid biofuels in Argentina. It reveals that biodiesel production for international supply is likely to emerge in the short run (up to 2010), giving the opportunity to be switched back to local supply in the medium run (post-2010). It also suggests that a bioethanol market (demand and supply) does not seem to be likely in the short run, and it is highly uncertain in the medium run as the most influential actors oppose its development. On the other hand, the current constellations of the biodiesel market appear to leave many uncertainties regarding its sustainability, especially in regard to a limited role of small and medium sized enterprises, and a suitable and diversified biodiesel feedstock. Currently, the focus lies solely on (very) large-scale production of biodiesel derived from soybean oil for the export market.

Date: 2008
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