OECD study on biofuel subsidy
|OECD study on biofuel subsidy
Date published: May 16, 2007
|The Netherlands wants the OECD (Organisation for Economic Cooperation and Development) to conduct a study into unfair subsidies for biofuels. State Secretary Frank Heemskerk (Ministry of Economic Affairs) has requested this study, along with Sweden.
Mr Heemskerk announced this request at the OECD meeting in Paris. According to the politician, biofuels play an important role as an alternative for gas and oil. But he considers it necessary to look beyond this point. The OECD, which conducts all kinds of economic studies, is just the right platform for bringing to light all the pros and cons on the subject.
The State Secretary also pointed out that the effect of biofuel production may result in food production being reduced in certain countries. Certainly in developing countries this could mean that the price of food increases. The environment may also be vulnerable, if biofuel production destroys the biodiversity and creates a one-sided agricultural crop cultivation.