Utilizing biofuels for sustainable development in the panel of 17 developed and developing countries

Abstract

This study investigates the dynamic linkages between biofuels production and sustainable indicators in the panel of 17 developed and developing countries, over the period of 2000-2012. The study emphasized the role of biofuels production in the sustainable development of the region. For this purpose, the study utilized four main sustainable indicators including carbon dioxide emissions, energy intensity, renewable energy generation, and total population that have a significant impact on the biofuels production. The study used dynamic heterogeneous panel econometric technique - Generalized Method of Moments and found that carbon dioxide emissions increase along with the increase in biofuels production. Therefore, the caution should be applied when burning the biofuels during the production process. In addition, renewable electricity generation also increases the biofuels production in the region. The results of robust least square regression confirmed that all of the sustainable indicators have a significant association with the biofuels production, as total primary energy consumption increases the biofuels production, while total population significantly decreases the biofuels production in the region. The results derived to the conclusion that for sustainable development in the region, the policymakers should have to formulate carbon free policies that coupled with the renewable energy sources for emphasizing the life cycle of bioenergy during the production process.