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Final Thesis Defense

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Gerardine Millares

on 9 April 2013

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Transcript of Final Thesis Defense

Presented by:
Ma. Gerardine Carlisa S. Millares
Adrian Kristoffer Joshua I. Limpin Problem Statement “How did the Philippine government factor in the requirements of Sustainable Development in picking potential industry winners to develop within the Biofuels industry?”

1. What are the bases and justifications of government intervention in Biofuel industry development in the Philippines?

2. How did the Philippine government appreciate existing learnings on biofuels development from the scientific community and from countries that have considerable experiences on it?

3. How did the government consider the dilemma between food security and sustainable energy, as well as economic growth and inclusive growth, in its decision to promote biofuels, and who are the winners and losers from the decision? Objectives of the Study Focal Unit of Analysis Biofuels Feedstock Coconut Sugarcane Jatropha Sweet Sorghum Macroalgae The Political Economy of the Investment Prioritisation Process in the Philippine Energy Sector: Building State Capacity for Inclusive Growth? Main Problem Statement Objectives 2 and 5 PS Sub Question 1 Objective 1 PS Sub Question 3 Objective 3 Energy Investment Prioritisation Process Biofuels Act of 2006
RA 9367 Mitigate GHG emissions Increase rural
employment and income Reduce dependence on
imported oil Renewable Energy Act of 2008
RA 9513 Philippine Development Plan Investment Priorities Plan Public Investments Plan National Biofuels
Programme National Biofuels Feedstock
Programme Social Amelioration and Welfare Programme National Renewable Energy Plan Biodiesel = 2 per cent Bioethanol = 10 per cent Research and
Development Lab-scale tests Pilot-scale tests Commercialisation Tripartite Agreement Production Distribution REWARD Were there Market Failures? Environmental Externalities YES! Social Externalities Other factors: Volatile oil prices Trend of Sustainable Development Please refer to the handout provided PAGE 77 Sugarcane Jatropha Sweet Sorghum Microalgae
and
Macroalgae Rationality of
Decisions Made,
Winners and
Losers Coconut Rational Winners: Government and biodiesel producers No clear loser Politicised Winners: Sugar lobbyist Losers: Bioethanol producers Pole-vaulting Irrational No clear winner Losers: farmers, private investors, and the research community Rational Winners: Bioethanol producers Sustainable Development Indicators Farmer's Income Cost of production Investor's Income Competing Land Uses Energy Balance Job Creation Winner: Coconut Winner: Potentially sweet sorghum Loser: Coconut farmers Loser: Jatropha Lowest: Sugarcane Highest: Sweet Sorghum Winners : Coconut (Biodiesel) Losers: Sugarcane (Bioethanol) Ideal winner: Jatropha Winner:
Coconut and Sweet sorghum (promising) Winner: Jatropha New Wave of Statist Institutionlism? First wave = NICs (Japan and South Korea) Different experience from the first wave (e.g. export-oriented vs self-sufficiency) Second wave = building state capacity for Third World countries to catch up and achieve sustainable development Reconciling traditional economic goals with sustainable development goals Philippine experience on biofuels shows that it is trying to emulate this new emerging model at least on paper or through policy Conclusion 1. What are the bases and justifications of government intervention in the biofuels industry in the Philippines? There were market failures identified along with growing trends around the world. 2. How did the Philippine government appreciate existing learnings on biofuels development from the scientific community and from countries that have considerable experiences on it? Significant influence of India and some lessons provided by Brazil. (e.g. viability of sugarcane and long-term solution of pole-vaulting) 3. How did the government consider the dilemma between good security and sustainable energy, as well as economic growth and inclusive growth, in its decision to promote biofuels, and who are the winners and losers from the decision? Through the JAO 2008-1 and on how the government targeted inclusive growth through its policy and programmes. Winners and losers vary from the biofuels feedstock. 4. How did the Philippine government factor in the requirements of sustainable development in picking potential industry winners to develop within the energy sector? The government through the case of the biofuels industry clearly reconciled the sustainable development indicators with thos traditional ones at least on paper. Strategy on Sustainable Development and Green Economy More studies on the
emerging second wave
of Statist Institutionalism
by looking at other cases Recommendations Raising awareness
and a way of providing transparency and accountability Knowledge-management The Adapted Public Expenditure Analytical Framework Dedications “Dedicated to those who believe that the future of life starts with the energy of today; To the people who exert their effort as to fuel the movement in lighting up the way for the future generations; For those who aspire for a harmonised relationship between Mother Nature and our human progression; And for all those who believe and love the world.” PS Sub Question 2 Objective 4 Conceptual Framework Microalgae Methodology Key Informant Interviews (KIIs) Oral Interviews Written Interviews DOST
DOE
DA
DENR
Enerdice Biofuels Corporation NEDA
PNOC-AFC
LBP
PCA
LGU
PO DTI-BOI
NEDA Secondary data
sources Scope and Limitations JAO 2008-1 documentary requirements The Government’s Policy Approach to Biofuels Promotion and Development The rationale of the documentary requirements of JAO 2008-1 Status of development of various feedstocks Biofuels Industry
Feedstocks Adapted Public Expenditure Analytical Framework Existing country experiences Investment
Prioritisation
Process Biofuels
Industry
Promotion and
Development
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