Paradoxes of biofuels in Argentina

CARRIZO SILVINA CECILIA, CHAMPREDONDE, MARCELO, GUIBERT MARTINE

Goyang (Corea)

Congreso; XII World Congress of Rural Sociology; 2008

IRSA International Rural Sociology Association,

In 2007, Argentina –the largest soybean oil exporter- started to participate in the global biofuels market, with its first biodiesel exports. National legislation imposes a 5% biofuels blend by 2010 and promotes their use for electricity generation. The consumption of renewable energy sources would contribute to change the energy model -based 90% on fossil fuels-. Moreover, small agricultural producers from different regions of the country would receive benefits from their biofuels production: a share guaranteed for the national market as well as tax exemptions. Paradoxically, producers lack financial assistance for their investments. Actual biodiesel production is concentrated among a few big oil companies and it is exported while Argentina has gasoil deficits. This presentation emphasizes the lack of compromise from the State to change not only the Argentine energy model based on hydrocarburates, but also the agro-export productive model, in order to promote real opportunities of development for small producers.