Algal biodiesel economy and competition among bio-fuels

This investigation examines the possible results of policy support in developed and developing economies for developing algal biodiesel through to 2040. This investigation adopts the Taiwan General Equilibrium Model-Energy for Bio-fuels (TAIGEM-EB) to predict competition among the development of algal biodiesel, bioethanol and conventional crop-based biodiesel. Analytical results show that algal biodiesel will not be the major energy source in 2040 without strong support in developed economies. In contrast, bioethanol enjoys a development advantage relative to both forms of biodiesel. Finally, algal biodiesel will almost completely replace conventional biodiesel. CO2 reduction benefits the development of the bio-fuels industry. (C) 2010 Elsevier Ltd. All rights reserved.