From Comparative Advantages to Competitive Advantages : Biofuel Strategies for Sustainable Development

Energy source and flows have been closely linked with development and industrialization. However, its impact on environment and its sustainability have been exogenous to the tradition development pathway. In this paper we adapt two concepts of Comparative advantages and Latecomer advantages to present an integrated strategy for sustainable development in emerging economies. The idea of comparative advantage has been much discussed within the economic and international trade literature. Latecomer advantages on the other hand has become been a vibrant research area within the management literature. We propose a policy framework focusing on strategies that late industrializing countries can pursue which result from identifying specific national comparative advantages. Here we present the case of India focussing on the biofuels sector. It also draws on the lessons learned from the Brazilian and Argentinian Biofuel industries. This paper analysis the current Biofuels policies and further builds a framework to develop appropriate strategies and to bind the economic opportunities from biofuels sector to aid rural development