Volume 6, Issue 1
Published: February 1, 2012
Australia: the mandate debate

As with most other countries promoting renewable fuels, targeted policies and support from federal and state governments are critical components for determining the transport fuel mix in the Australian economy. The real question is whether government intervention will have the intended effect on changing consumer behaviour towards biofuels?

Mandates are a key tool used by governments to promote biofuels. However, economists continue to argue about their effectiveness and how they interfere with free market mechanisms, creating price distortions.

In Australia, the introduction of biofuel mandates has rested with state governments which are keen to promote regional development and investment.

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