Carlos A. Romero

Potential Gains and Losses of Biofuel Production in Argentina: A Computable General Equilibrium Analysis

Argentina is one of the worlds largest biodiesel producers and the largest exporter, using soybeans as feedstock. Using a computable general equilibrium model that explicitly represents the biofuel industry, this study carries out several simulations on two sets of issues: (i) international markets for biofuel and feedstock, such as an increase in prices of soybean, soybean oil, and biodiesel, and (ii) domestic policies related to biofuels, such as an introduction of biofuel mandates. Both sets of issues can have important consequences to the Argentinean economy. The simulations indicate that increases in international prices of biofuels and feedstocks would increase Argentinas gross domestic product and social welfare. Increases in international prices of ethanol and corn also can benefit Argentina, but to a lesser extent. The domestic mandates for biofuels, however, would cause small losses in economic output and social welfare because they divert part of biodiesel and feedstock from exports to lower-return domestic consumption. An increase in the export tax on either feedstock or biodiesel also would lead to a reduction in gross domestic product and social welfare, although government revenue would rise.

From Chávez to Maduro: Continuity and Change in Venezuelan Foreign Policy

This article addresses the transition from the presidency of Hugo Chavez to that of Nicolas Maduro, in the light of the effects of the dynamics in domestic politics and the changing international order on the formulation of Venezuela’s foreign policy. We start from a central question: how does Maduro’s government, amid a less favourable global scenario, face the international commitments made by its predecessor under complex and different domestic conditions? Our central hypothesis is that the historical currents of sociopolitical fragmentation, regional tensions and the energy market, pose difficulties to the continuation of an expansive foreign policy, but in turn act as a stimulus for greater centralisation of power internally, and the politicisation of the foreign policy agenda, in line with the objectives and general trends pursued by the governing party.