36
2 The Contested Sustainability of Biofuels …
2.4.2 Rural Development and Biofuel Value Chains
in a North-South Context
The promotion of rural development has been a powerful argument for biofuel expansion—anticipating its use as a rationale for the broader bioeconomy (see European
Commission 2018). Feedstock cultivation can boost the agricultural sector, create
jobs for rural workers, improve smallholder incomes, and spur economic development while meeting renewable energy and other demands (Von Braun and Pachauri
2006; Mathews 2007; Goldemberg et al. 2008; Altenburg et al. 2009; Elbehri et al.
2013; Börner et al. 2017). Moreover, biofuel and other bio-based value chains can
foster scientific and technological development, as they usually require substantial
R&D (Van Dam et al. 2005; Langeveld et al. 2010b).
Such a bioeconomy development is of particular relevance to developing countries for two main reasons. First, there is an understanding that such countries are
better endowed to produce feedstocks due to biophysical and economic comparative
advantages (Mathews 2007; Sawyer 2008). Tropical areas have soils and climates
that favor biomass growth year-round (Mathews 2007). They also have the crops
that—with current technologies and on a large commercial scale—still obtain the
highest ethanol and biodiesel yields per hectare (sugarcane and oil palm, respectively) (Goldemberg et al. 2008; Koh 2007). Next-generation technologies such as
gasification and cellulosic ethanol can suit different feedstocks (i.e., they are not
dependent on a specific crop), so they, too, may gain from the higher biomass productivity of the tropics (Sagar and Kartha 2007). The potential is even more considerable
for other bio-based industries, as tropical countries are richer in biodiversity. Finally,
those countries tend to have cheaper land and labor available, reducing production
costs, and making business more attractive (Mathews 2007).
4
Second, the developing world has more benefits to reap from biofuel production
(Vasconcellos and Vidal 2004; Mathews 2007). Those countries have large rural
populations in need of development opportunities to provide them with better access
to income, basic resources, and services (Kuik et al. 2011). Also, developing countries
have a North-South gap to bridge—in line with Sustainable Development Goal 10,
aiming to reduce inequalities within and among countries. Much of the global income
inequality owes to the skewed distribution of roles in commodity chains, which tend
to concentrate value-added activities in developed countries and leave most lowvalue, natural-resource intensive stages to developing countries (Arrighi and Drangel
1986; Wallerstein 2009; Brewer 2011). Biofuel production may thus contribute to
greater equity by promoting local or domestic value-added, which is key to economic
development (UN-Energy 2007; UNIDO 2011; Stamm and Von Drachenfels 2011;
Elbehri et al. 2013). As a country moves up on the value chain, knowledge and
technological innovations also become more critical (Lall 2003). Therefore, biofuels
4 Algae are an option that could dismiss many of these factors that give developing countries an
advantage. Its commercial production on a larger scale would likely have a number of different
requirements, but abundant sunlight throughout the year would be certainly an asset, and this is
again to the advantage of tropical regions.
2 The Contested Sustainability of Biofuels …
2.4.2 Rural Development and Biofuel Value Chains
in a North-South Context
The promotion of rural development has been a powerful argument for biofuel expansion—anticipating its use as a rationale for the broader bioeconomy (see European
Commission 2018). Feedstock cultivation can boost the agricultural sector, create
jobs for rural workers, improve smallholder incomes, and spur economic development while meeting renewable energy and other demands (Von Braun and Pachauri
2006; Mathews 2007; Goldemberg et al. 2008; Altenburg et al. 2009; Elbehri et al.
2013; Börner et al. 2017). Moreover, biofuel and other bio-based value chains can
foster scientific and technological development, as they usually require substantial
R&D (Van Dam et al. 2005; Langeveld et al. 2010b).
Such a bioeconomy development is of particular relevance to developing countries for two main reasons. First, there is an understanding that such countries are
better endowed to produce feedstocks due to biophysical and economic comparative
advantages (Mathews 2007; Sawyer 2008). Tropical areas have soils and climates
that favor biomass growth year-round (Mathews 2007). They also have the crops
that—with current technologies and on a large commercial scale—still obtain the
highest ethanol and biodiesel yields per hectare (sugarcane and oil palm, respectively) (Goldemberg et al. 2008; Koh 2007). Next-generation technologies such as
gasification and cellulosic ethanol can suit different feedstocks (i.e., they are not
dependent on a specific crop), so they, too, may gain from the higher biomass productivity of the tropics (Sagar and Kartha 2007). The potential is even more considerable
for other bio-based industries, as tropical countries are richer in biodiversity. Finally,
those countries tend to have cheaper land and labor available, reducing production
costs, and making business more attractive (Mathews 2007).
4
Second, the developing world has more benefits to reap from biofuel production
(Vasconcellos and Vidal 2004; Mathews 2007). Those countries have large rural
populations in need of development opportunities to provide them with better access
to income, basic resources, and services (Kuik et al. 2011). Also, developing countries
have a North-South gap to bridge—in line with Sustainable Development Goal 10,
aiming to reduce inequalities within and among countries. Much of the global income
inequality owes to the skewed distribution of roles in commodity chains, which tend
to concentrate value-added activities in developed countries and leave most lowvalue, natural-resource intensive stages to developing countries (Arrighi and Drangel
1986; Wallerstein 2009; Brewer 2011). Biofuel production may thus contribute to
greater equity by promoting local or domestic value-added, which is key to economic
development (UN-Energy 2007; UNIDO 2011; Stamm and Von Drachenfels 2011;
Elbehri et al. 2013). As a country moves up on the value chain, knowledge and
technological innovations also become more critical (Lall 2003). Therefore, biofuels
4 Algae are an option that could dismiss many of these factors that give developing countries an
advantage. Its commercial production on a larger scale would likely have a number of different
requirements, but abundant sunlight throughout the year would be certainly an asset, and this is
again to the advantage of tropical regions.