The biofuel bubble in northern Sweden and Finland

Research output: Contribution to journalArticleScientificpeer-review

2 Citations (Scopus)

Abstract

Purpose: The purpose of this paper is to offer a critique of government intervention in the production of biofuel in northern Sweden and Finland, highlighting some of the welfare consequences. Design/methodology/approach: After a short review of government interventions, including laws, taxes and subsidies, Austrian economic principles are applied, which lead to universal statements about the impacts of government intervention. Findings: Government intervention on behalf of the biofuel production industry leads to the emergence of an investment bubble, with consequential negative impacts on welfare. Practical implications: The paper informs about the true costs of intervention in biofuel production, which suggests that policy makers may abstain from justifying interventions for the sake of increasing people's welfare. Originality/value: The paper contributes to the research of the production impacts of a new energy technology in the form of biofuel in particular and of governmental intervention in production in general. The paper, furthermore, enhances the use of the method and theory of the Austrian school of economic science.
Original languageEnglish
Pages (from-to)569-584
JournalInternational Journal of Energy Sector Management
Volume6
Issue number4
DOIs
Publication statusPublished - 16 Nov 2012
MoE publication typeA1 Journal article-refereed

Fingerprint

Biofuels
Economics
Taxation
Finland
Sweden
Bubble
Government intervention
Costs
Industry

Cite this

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abstract = "Purpose: The purpose of this paper is to offer a critique of government intervention in the production of biofuel in northern Sweden and Finland, highlighting some of the welfare consequences. Design/methodology/approach: After a short review of government interventions, including laws, taxes and subsidies, Austrian economic principles are applied, which lead to universal statements about the impacts of government intervention. Findings: Government intervention on behalf of the biofuel production industry leads to the emergence of an investment bubble, with consequential negative impacts on welfare. Practical implications: The paper informs about the true costs of intervention in biofuel production, which suggests that policy makers may abstain from justifying interventions for the sake of increasing people's welfare. Originality/value: The paper contributes to the research of the production impacts of a new energy technology in the form of biofuel in particular and of governmental intervention in production in general. The paper, furthermore, enhances the use of the method and theory of the Austrian school of economic science.",
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The biofuel bubble in northern Sweden and Finland. / Walter, Stefan.

In: International Journal of Energy Sector Management, Vol. 6, No. 4, 16.11.2012, p. 569-584.

Research output: Contribution to journalArticleScientificpeer-review

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AB - Purpose: The purpose of this paper is to offer a critique of government intervention in the production of biofuel in northern Sweden and Finland, highlighting some of the welfare consequences. Design/methodology/approach: After a short review of government interventions, including laws, taxes and subsidies, Austrian economic principles are applied, which lead to universal statements about the impacts of government intervention. Findings: Government intervention on behalf of the biofuel production industry leads to the emergence of an investment bubble, with consequential negative impacts on welfare. Practical implications: The paper informs about the true costs of intervention in biofuel production, which suggests that policy makers may abstain from justifying interventions for the sake of increasing people's welfare. Originality/value: The paper contributes to the research of the production impacts of a new energy technology in the form of biofuel in particular and of governmental intervention in production in general. The paper, furthermore, enhances the use of the method and theory of the Austrian school of economic science.

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