87
© The Editor(s) (if applicable) and the Author(s) 2018
K. Takeuchi et al. (eds.), Biofuels and Sustainability, Science for Sustainable
Societies, https://doi.org/10.1007/978-4-431-54895-9_8
Chapter 8
Socioeconomic Impacts of Biofuels in East
Asia
Mark Elder, Jane Romero, Anindya Bhattacharya, Daisuke Sano,
Naoko Matsumoto, and Shinano Hayashi
8.1 Introduction
This chapter discusses the social and economic impacts of biofuels in East Asia by
analyzing four country case studies. Three case study countries are large Asian rapidly developing countries which were expected to be large consumers and producers
of biofuels at the beginning of the biofuel boom in the late 2000s: Indonesia, India,
and China. All three of these countries developed ambitious initial biofuel promotion plans. The fourth country case is a developed country, Japan. Japan has some
domestic production potential, although it is quite small compared to potential
domestic demand, so many expected that Japan might become a significant importer
of biofuels or biofuel feedstocks, especially from the Asian region.
The main potential positive impacts for all four countries include employment,
income, rural development, and energy security. Rural electrification and increasing
energy access for poor people are important objectives for developing countries. Air
pollution reduction is another potential benefit, although this varies by the type of
fuel and feedstock. The main potential negative impacts include competition with
food and other land uses; negative impacts on ecosystem services, particularly
related to deforestation and water usage; and social impacts such as land tenure
rights (e.g., if land of poor farmers is taken over by large producers without consent
or fair compensation).
Several important factors should be taken into account when analyzing impacts.
First, the potential effects vary significantly by feedstock, market structure and conditions, and other local conditions such as geography, social structure, etc. Second,
there may be difficult trade-offs between economic costs and desired socioeconomic impacts. For example, maximizing employment and income for farmers and
M. Elder (*) · J. Romero · A. Bhattacharya · D. Sano · N. Matsumoto · S. Hayashi
Institute for Global Environmental Strategies (IGES),
2108-11 Kamiyamaguchi, Hayama, Kanagawa 240-0115, Japan
e-mail: elder@iges.or.jp
© The Editor(s) (if applicable) and the Author(s) 2018
K. Takeuchi et al. (eds.), Biofuels and Sustainability, Science for Sustainable
Societies, https://doi.org/10.1007/978-4-431-54895-9_8
Chapter 8
Socioeconomic Impacts of Biofuels in East
Asia
Mark Elder, Jane Romero, Anindya Bhattacharya, Daisuke Sano,
Naoko Matsumoto, and Shinano Hayashi
8.1 Introduction
This chapter discusses the social and economic impacts of biofuels in East Asia by
analyzing four country case studies. Three case study countries are large Asian rapidly developing countries which were expected to be large consumers and producers
of biofuels at the beginning of the biofuel boom in the late 2000s: Indonesia, India,
and China. All three of these countries developed ambitious initial biofuel promotion plans. The fourth country case is a developed country, Japan. Japan has some
domestic production potential, although it is quite small compared to potential
domestic demand, so many expected that Japan might become a significant importer
of biofuels or biofuel feedstocks, especially from the Asian region.
The main potential positive impacts for all four countries include employment,
income, rural development, and energy security. Rural electrification and increasing
energy access for poor people are important objectives for developing countries. Air
pollution reduction is another potential benefit, although this varies by the type of
fuel and feedstock. The main potential negative impacts include competition with
food and other land uses; negative impacts on ecosystem services, particularly
related to deforestation and water usage; and social impacts such as land tenure
rights (e.g., if land of poor farmers is taken over by large producers without consent
or fair compensation).
Several important factors should be taken into account when analyzing impacts.
First, the potential effects vary significantly by feedstock, market structure and conditions, and other local conditions such as geography, social structure, etc. Second,
there may be difficult trade-offs between economic costs and desired socioeconomic impacts. For example, maximizing employment and income for farmers and
M. Elder (*) · J. Romero · A. Bhattacharya · D. Sano · N. Matsumoto · S. Hayashi
Institute for Global Environmental Strategies (IGES),
2108-11 Kamiyamaguchi, Hayama, Kanagawa 240-0115, Japan
e-mail: elder@iges.or.jp