The Policy Objectives of a Biofuel Industry in Canada: An AssessmentReport as inadecuate

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Department of Economics, The University of Lethbridge, Lethbridge, AB, T1K 3M4, Canada


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Abstract Canada has a huge stock of biomass resources, which provides a basis and a temptation for development of a major bio-fuels industry. Both federal and provincial governments have engaged in a wide array of subsidies, mandates, and other measures to stimulate production and consumption of biofuels. As a result, biofuels has become a growth industry in Canada with production of ethanol almost 10 times higher than it was ten years earlier. However, this has come at considerable cost to taxpayers. Increased biofuel production has resulted in minimal reduction in greenhouse gases, short run but not long run increases in net farm income that benefited grain and oilseed producers but hurt livestock producers, large increases in the prices of farm land due to the higher grain and oilseed prices, and minimal impacts on rural economic diversification. View Full-Text

Keywords: biofuel; Canada; policy; economics biofuel; Canada; policy; economics

Author: Danny G. Le Roy * and Kurt K. Klein



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