Support to organic farming and bio-energy as rural development drivers

Summary

The paper conducts an analysis of the potentials of organic farming and bioenergy as win-win-win strategies promoting economic growth, employment and the environment at the same time. Empirical evidence does not indicate that conversion to organic farming will enhance economic growth and employment, but there are environmental benefits primarily due to the absence of pesticides. If energy crops are grown on idle land bioenergy has the potential of generating economic activities and employment alongside with CO2 reductions. Liquid biofuel production is a relatively expensive way of reducing CO2, but there is a potential for technological breakthroughs making it economically viable to use low value feedstock like straw and waste for bioethanol production. It is recommended that the positive environmental effects of organic farming and bioenergy are internalised through green taxes on the negative externalities from conventional farming and fossil energy use.