University of Twente Student Theses


Improving the bioethanol sector in Germany, Framce and Spain

Anderke, Sebastian (2013) Improving the bioethanol sector in Germany, Framce and Spain.

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Abstract:Modern global threats like the climate change and the rising oil prices increasingly influence the EU and its citizen. Renewable technologies, such as biofuels, are being more and more used to fight these treats or to limit at least their consequences. The Thesis at hand contributes to the increasing use and analysis of biofuels as anticipated by the EU. It is a study focusing on the bioethanol sectors of Germany, France and Spain. Thereby it analysis their current bioethanol sector to give recommendations for improvement. Porter’s Diamond Model, which elaborates the competitiveness of a nation for a specific industry sector, is the tool used for the analysis. The great advantage this tool brings with it, is that it draws a very clear picture of the national competitiveness, allowing for an in-depth estimation of the countries strengths and weaknesses in the given sector. As the analysis shows Germany has a strong national competitiveness in the bioethanol sector. Nevertheless it is recommended to strengthen the cooperation of different industries to support each other and to fend of foreign imports, thereby increasing the demand for bioethanol. Like Germany France also has a strong national competitiveness in the bioethanol sector. Part of this strong national competitiveness is derived from tax relief. To decrease fiscal expenditure the French government is advised to switch from the policy tool of tax relief to the policy tool of mandatory blending quotas in order to promote the bioethanol demand. Spain has in contrast to the previous two countries a medium weak national competitiveness in the bioethanol sector. This can be partly traced back to the current economic recession in Spain and the monopolistic character of its bioethanol sector. The policy recommendations take these special circumstances into account and aim at helping the industry sector to become more competitive. Among other things Spain is advised to help bioethanol companies getting credits for further development and to improve the national human resources. Overall recommendations to the four countries include a continuing support of bioethanol as this will help the countries in many ways. They are furthermore advised to increase their endeavours in research projects, especially at those that aim at reducing negative externalities of the bioethanol production. Following the recommendations will help the three countries to tackle the previous mentioned pressing problems of today.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics
Programme:European Studies BSc (56627)
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