The impact of market factors on the development of eco-friendly energy technologies: the case of bioethanol

Global warming is emerging as the most serious concern for the planet, with greenhouse gas emissions (GHG) contributing considerably to the problem. Consequently, warranting energy sustainability has turned into an urgent issue for scholars and policy-makers alike. Bioethanol has emerged as a viable eco-friendly replacement for avoiding GHG generating fossil fuels. However, bioethanol has faced several hurdles that have discouraged its development during these years. Apart from unpractical technological applications and failed ventures, bioethanol has been experiencing heavy competition from hydrocarbon fuels and adverse economic cycles. Currently, bioethanol is facing an uncertain scenario due to the combination of climbing crop prices and slow innovative production processes, including the cost-effective utilization of agriculture waste. Here, the impact of market conditions upon the competitive development of bioethanol is analyzed. It is argued that fluctuating fossil fuel prices over the last ten years has discouraged bioethanol’s technological viability. As a result, the consolidation of industrial biotechnology, especially for biorefineries, has slowed down. Policy implications of recurrent fluctuations in the bioethanol market are also discussed. GRAPHIC ABSTRACT: [Image: see text] SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s10098-021-02225-6.