Prueba de hipótesis específicas

As explained in section 2.8.2 the EU strategy is to use biofuels to reduce fossil fuel dependence in the transport sector (Palacio, 2000). The strengthening of the renewable energy sector is intended to achieve this. According to the Directive 2009/28/EC, renewable energy sources as wind power, solar power (thermal and photovoltaic), hydro-electric power, tidal power, geothermal energy and biomass have the potential of weaning the transport sector from relying on imported fossil fuels (article 8). The use of biomass to produce biofuels is recognized as a cost- effective sustainable source of energy (Demirbas, 2006). The role of biofuels in GHG mitigation is a major reason for their use (European Parliament, Council, 2009).

Article 17 of the Directive 2009/28/EC urges the use of biofuels in the context of climate change and sets targets for GHG reduction. The EU biofuels directive has policy areas aimed at increasing the use of biofuels including ethanol.

Article 69 of the directive, encourages EU member states to use biofuels and meet their consumption targets. This it is postulated would increase the demand for biofuels and increase the use of biofuels. Guidelines have been proposed to monitor industries that use biofuels and ensure that there is no bias against some biofuels or their origins. The use of biofuels is to be encouraged by highlighting economic activity and job creation opportunities (article 1, 86).

Expanding feedstock supplies is another initiative for promoting the use of biofuels in the EU (article 89). Article 74 of the directive focuses on countries affected by the EU sugar reforms and Malawi is one of them. Aid programmes are proposed to help in the drafting of national biofuel policies to increase the use of biofuels among other things. Further according to article 66 of the directive, the full use of second generation biofuels and biomass is to be researched by the biofuels industry.

The following are important lessons from the EU:

a) Policy guidelines are proposed to ensure the use of biofuels. Blending mandates are therefore consistent with this policy.

b) The development of second generation biofuels is to be vigorously pursued in the sustainability context of biofuel production.

2.16.6 Analysis

Ethanol use in Brazil was increased through a combination of strategic legislation and incentives. ProAlcool was aimed at reducing vehicular emissions and this led to incentives directed at car manufacturers thus producing EDVs and FFVs (Johnson and Silveira, 2014). No other ethanol programme has matched this feat. A series of price controls aimed at increasing ethanol use and production were enacted as described in section 2.8.2. The notable one is where the ethanol price is capped at sixty five percent (65%) of the petrol price (Xavier, 2007). In Malawi MERA (2011) publishes maximum fuel pump prices every time the world

oil prices move. This as noted before does not target increasing ethanol use in Malawi (section 2.8.2).

In China, price regulation in the biofuel policy is vigorous and is aimed at keeping the price of petrol higher than ethanol for the growth of ethanol use and production. The Indian price control regime on the other hand is not for the growth of ethanol use but for benefiting the sugarcane farmers.

The sugarcane industry in Brazil is protected by government interventions when the sugar prices are unfavourable (Xavier, 2007). The sugar industry and ethanol industry in Brazil are linked. In the case of Malawi there are no government interventions to protect the sugar industry. The ethanol industry’s connection with sugar is via the sale of molasses to the ethanol companies by the sugar company. The sugar prices in India are regulated for the benefit of the small holder farmer and do not target incentivizing ethanol use.

The blending mandate in Brazil stipulates that all fuel filling stations must supply ethanol as a standalone fuel (100% ethanol), blended petrol with ethanol (up to 24% ethanol) and fossil fuel. This increases ethanol use since FFV owners will gravitate towards ethanol due to the lower price of ethanol and availability. As noted before the biofuels policy containing the ethanol price controls in China is embedded in the national development plan. The effect is that the growth of ethanol use in China is guaranteed. In the Indian biofuels policy ethanol blending with petrol is mandated for certain areas only. Ethanol use increases as the number of areas mandated increases. Theoretically all petrol sold in Malawi is blended with ethanol according to the mandate in the Gazette of 31 December 2010. However as noted earlier there is a shortage of molasses and therefore not enough ethanol to blend all the petrol (Chapter 1, section 1.5.1). Further Malawi still does recognize ethanol as a standalone fuel and there is no requirement for ethanol dispensing pumps at filling stations. As Chinamulungu (2016), observes the stalling of initiatives such as the EDV in Malawi leaving the standalone fuel issue unresolved regress rather than increase ethanol use. Ethanol use increases only as the volume of molasses and petrol increases. The question then arises as to how ethanol use can be increased in Malawi. The research question is appropriately framed as follows:

How can the use of ethanol be increased? (Chapter 1, section 1.10).

In this section, the researcher reviewed literature pertaining to increased use of ethanol. He established that there are many ways of increasing the use of ethanol. In the next section the researcher investigated sustainability criteria for the production and use of ethanol.