Abstract for: SD simulation for assessing biofuels incentives
Biofuels have become a good economic, social and environmental alternative to fossil fuels. Policies and incentives have been design aiming at their rapid supply and demand penetration worldwide. However, in Colombia, the proposed goals have not been met yet, and the fuel mix program initially proposed by the government has suffered changes. This article assesses, using an SD model, alternative policies and incentives and concludes that incentives such as the compulsory fuel mix and a price tariff (that covers a minimum opportunity cost) have a significant impact on biofuels production; these, contrast with VAT and income tax incentives, which have no significant impacting on production.