Economic and environmental repercussions of a future biofuel industry in Australia

Abstract:

Fossil fuels are used asmainenergysourcefor the transportation sector. Our heavy reliance on fossil fuels has not only resulted in an increasein greenhouse gas emissions but alsothe depletion of oil reserves around the world. Australia's oil self-sufficiency is also rapidly declining, with the country importing over 30% of the oil products. This is projected to increase to 76% by 2030. Consequently, there is a strong need to transition from fossil-fuel based resources to renewable sources such as biofuels with their potential to reduce greenhouse gas emissions and increase energy security.Australia has the potential to sustain a biofuel industry to provide a low-emission alternative to the country's current dependence on oil for transportation. This study aimsto evaluate the environmental and economic consequences of a future biofuel production industry using input-output analysis. Input-output analysis allows the assessment of the environmental and economic flows between different sectors in the supply chain. In particular, we quantify the proportion of direct and indirect job creation for Australia's rural community. A biofuel production industry will not only reduce Australia's petroleum dependence, create new jobs, but will also be a positive step forward towards a sustainable bio-economy.