CIFOR Introduces Model to Build Scenarios on Biofuel Investment

FAOApril 2012: The Center for International Forestry Research (CIFOR) has released a working paper that presents a model to simulate the decisions of domestic and international biofuel investors.

The model can be used to inform scenarios on the potential for biofuel production to contribute to national development goals. The scenarios allow users to adjust the model to specify policy and account for uncertain factors, such as assumptions regarding fossil fuel prices. The models were developed based on constraints established with the South African Development Community (SADC) Biofuels Task Force. The working paper describes elements of the model including: business constraints and assumptions; domestic energy demand variables; production and prices for competing fuels; risk and learning decision points and incorporating uncertainty.

The model was developed in coordination with the Stockholm Environment Institute. CIFOR is a member of the Consultative Group on International Agricultural Research (CGIAR). [Publication: The National Bioenergy Investment Model]