Comprehensive biofuel policy analysis framework: A novel approach evaluating the policy influences

The use of biofuel as an alternative to petroleum-based fuels was started in the 1970s in response to the oil crisis. In last two decades, there has been a massive rise in global utilization of biofuels which represents its growing importance as an alternative fuel source. This rise is attributed to the supportive biofuel policies which stimulate the growth in biofuel production and utilization. The biofuel policy mechanism of major producing countries got specific attention in this study. Australia, Brazil, Canada, China, European Union, India, Japan, Malaysia and the USA jointly controlled 99% of the global biofuel production and utilization. Several policy measures from creating and sustaining biofuel demand to establishing supportive economic and regulatory frameworks are already in place in the aforementioned countries. The study performs compositional policy analysis by developing a framework termed as ‘Comprehensive Biofuel Policy Analysis Framework’. A policy score named ‘Total Policy Measure Support’ is the outcome of the analysis. It reveals that countries with higher scores have better-performing biofuel sectors than the countries with low scores. Countries with moderate scores have inconsistency between their value and biofuel sector performance. It is linked with the absence or less than required focus on single or multiple policy components resulting in an imbalance in the policy framework. This underlines the importance of a balanced policy framework. If there is a lesser or no balance between the different policy components, biofuel production and utilization cannot grow despite high Total Policy Measure Support scores. •The study discusses country-wise biofuel policies in connection with biofuel production and utilization.•A framework named ‘Comprehensive Biofuel Policy Analysis’ (CBPA) developed for compositional analysis of biofuel policy.•CBPA framework rates policy components to generate a policy score termed ‘Total Policy Measure Support (TPMS)’.•The study finds high TPMS score is linked with better performing and low TPMS score with poor perfoming biofuel sector.•The study further reveals a balanced policy framework by considering it essential for the growth of the biofuel sector.