Recent Advances in Neo-Schumpeterian Economics
Show Less

Recent Advances in Neo-Schumpeterian Economics

Essays in Honour of Horst Hanusch

Edited by Andreas Pyka, Uwe Cantner, Alfred Greiner and Thomas Kuhn

This judicious selection of recent essays demonstrates the applicability of the fundamental principles of neo-Schumpeterian economics, namely, innovation and uncertainty. The authors demonstrate how neo-Schumpeterian economics is developing into a comprehensive economic theory encompassing industry, the public sector and financial markets.
Buy Book in Print
Show Summary Details

Chapter 9: Biofuels, Innovations and Endogenous Growth

Thomas Kuhn and Michael Pickhardt

Extract

9. Biofuels, innovations and endogenous growth Thomas Kuhn and Michael Pickhardt INTRODUCTION 1. In the European Union (EU), about 99 per cent of the transport sector’s energy demand is covered by petroleum oil products, which represents 67 per cent of final oil demand (European Commission, 2001, pp. 16 and 36). Yet limited stocks of non-renewable fossil fuels as well as temporarily limited production and distribution capacities, coupled with increasing fuel demand, are bound to lead to sharp increases in fossil fuel prices and to more price volatility in the near future. But in a globalized economy, which naturally depends on the smooth functioning of the transport sector, such price developments and the associated adjustment processes may have a severely negative impact on economic growth. Moreover, as fossil fuel stocks in the EU and other developed countries contribute an ever-decreasing share to local fossil fuel demand, growing import dependence and the associated risks may represent another important obstacle to future economic growth. Finally, current growth rates in virtually all countries may not be sustainable with fossil fuels, because fossil fuels contribute a substantially larger share to pollution and global warming (for details see, e.g., Pahl, 2005, pp. 56–60). Hence, for the foreseeable future, sustainable growth rates necessarily require a massive substitution process in which fossil fuels are gradually replaced by biofuels or hydrogen. To this extent, growth-orientated policy schemes as well as future energy policy must be, in large part, concerned with transportation fuel issues (Pickhardt, 2005, p. 497). Yet,...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.