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of  second-generation biofuels, and explored production outside its territory, for
example, the potential for palm oil plantations in Africa. In order to meet its skyrocketing energy demand, China must continue to explore all forms renewable
energy, even those with a relatively smaller scale. China has a large potential for
second-generation biofuels ( Eisentraut 2010). Second-generation biofuels could
play a more significant role as related technologies become more advanced, more
capital becomes available, especially including overseas investment, and associated
potential problems such as water scarcity are solved.
Biofuel production calls for close attention to the local conditions because natural resource availability, especially water and land, suitable agricultural/farming
technologies, and socioeconomic conditions vary  greatly across locations.
Knowledge and assessment of local biofuel producing conditions are essential.
Attention to labor availability is also important considering the increasing numbers
of migrant workers and aging workers in the rural labor market.
More opportunities may arise for biofuels to contribute to sustainable development if the scope of biofuel industries expands to explore by-products, diversified
products, or alternative feedstocks, including second generation. These would create more options for local economies. For instance, residues from Jatropha production can be used as fertilizers or for pest management, and glycerol produced during
transesterification as a by-product can be used for soaps and lubricants (ICRAF
China 2007). The use of biodiesel for rural electrification may not be as relevant to
China compared to other developing countries, since the country has already
achieved over 98% electrification in rural areas (Jiahua et al. 2006). Still, biodiesel
could be used for grinding wheat (ICRAF China 2007) or as an alternative to coal
or firewood, helping to reduce indoor air pollution, labor needed  to collect fire
wood, and the threat of deforestation. The cassava industry could start selling diversified starch-based products in the market as well, although this could potentially
affect feed markets. The government’s role in supporting R&D would be critical if
China continues to rely on state-owned enterprises. Thus, state-owned enterprises
have a critical role to play in influencing the socioeconomic impacts of biofuels.
8.5 Japan
8.5.1 Overview of Japan’s Main Policies
Japan started to promote biofuels from the mid-2000s by setting national strategies
and plans to promote biofuels including the “Biomass Nippon Strategy”
1
(2002,
revised in 2006), the “Kyoto Protocol Target Achievement Plan”
2
(2005), and the
“New National Energy Strategy”
3
(2006).
1 “Baiomasu Nippon Sogo Senryaku”.
2 “Kyoto Giteisho Mokuhyo Tassei Keikaku”.
3 “Shin Kokka Enerugi Senryaku”.
8 Socioeconomic Impacts of Biofuels in East Asia
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