This paper provides an analytical discussion of several interconnected resource allocation problems from under-pricing of electricity used by farmers for groundwater extraction. In these situations, groundwater extraction is inefficiently high even without electricity under-pricing. Moreover,...

Governments have influenced the development of bioenergy, particularly liquid biofuels (ethanol, biodiesel and pure plant oil used as a fuel), for several decades. This paper discusses the economics of biofuels and provides an overview of current policy measures to support their production and...