Frédérick Bernard
email: frederick.bernard@ifp.fr

Anne Prieur
email: anne.prieur@ifp.fr

D Perruchet

J.-P Cueille

Ceg-7 I Cadoret

J L Karnik

Ceg-9 A Fauveau

P Chollet

F Lantz

Biofuel market and carbon modeling to evaluate French biofuel policy

Keywords: Biofuels, Linear programming, Policy analysis . CADORET, P. RENOU, Élasticités et substitutions énergétiques : difficultés méthodologiques. Avril 1991

Les cahiers de l'économie -n° 63

Série Recherche

La collection "Les cahiers de l'économie" a pour objectif de présenter des travaux réalisés à l'Institut français du pétrole, travaux de recherche ou notes de synthèse en économie, finance et gestion. La forme peut être encore provisoire, afin de susciter des échanges de points de vue sur les sujets abordés.

Les opinions émises dans les textes publiés dans cette collection doivent être considérées comme propres à leurs auteurs et ne reflètent pas nécessairement le point de vue de l'École du pétrole et des moteurs ou de l'IFP.

Pour toute information complémentaire, prière de

INTRODUCTION

Transport is an issue of great concern to European countries for three main reasons. First, transport is almost totally dependent on oil and it accounts 67% of the final European oil demand. Second, strong inertia characterizes transports. The transport sector is the only sector to have known a steady growth since 1990 and by 2010 the increase in fossil fuel demand is expected to reach +16% for cars, +90% for planes and +50% for trucks (E.C., 2002). Third, transport is responsible for 21% of all greenhouse gases (GHG) emitted in Europe. European countries aim at lowering their oil dependence because oil prices are high and volatility makes countries vulnerable to a possible oil shock. Consequently, the European Commission (E.C.) has decided to secure its energy supply by reducing its import bill in diversifying its energy sources and technologies. Europe thus needs to find alternative transportation fuels that have a low environmental impact and allow for a rapid and easy substitution. For this reason biofuels are considered in the short and middle term by the E.C. as one of the best candidates to replace traditional fuels for transport (E.C., 2004). Since biofuels are liquid fuels, they can indeed be used with no major difficulties by current distributing infrastructure and in car engines by blending them with fossil fuels. In addition, it has now been proven that biofuels, when they are produced in a rationale way, are efficient to reduce CO 2 emissions because they are produced from renewable sources (ADEME et al., 2002;[START_REF] Eucar | Well-to-wheels analysis of future automotive fuels and powertrains in the European context[END_REF]. To help in such a substitution, the E.C. launched a European-wide program to promote biofuel in accordance with Kyoto protocol commitments. This program fixes biofuel target rates for compulsory biofuel blending in fossil fuels from 2005 to 2015. Every European country has to comply with the E.C. objectives using voluntary involvements, eco-labels, pilot projects, fiscal and legislative measures, and its own potential to produce biofuels, i.e. «liquid or gaseous fuels for transport produced from biomass: biodegradable fraction of products, waste and residues from agriculture, forestry and related industries, as well as the biodegradable fraction of industrial and municipal waste»(E. P&C, 2003). As for France, the country studied in the present paper, the main potential comes from agriculture. France is the first agricultural producer in the EU and over the 25 last years, the agricultural sector has increased its production by 35%. With 30 million hectares of cultivable land, 55% of the territory is dedicated to agriculture and about 19 Mha are used for crop production. Over this area, 1,5 Mha of fallow land, i.e. land that cannot be used for food crop productions, allow biofuel crops cultivation. In France, two main biofuels have been developed from crops so far: vegetable oil methyl ester (VOME) and ethanol. VOME is mainly produced from rapeseed and is used in blend with diesel fuel whereas ethanol is made from sugar beet and wheat and is used in gasoline engines. These crops are already well-known by French farmers who are the leading European producers of them. Even if a great part of these crops are exported, competition for land use may arise as soon as biofuel crop production goes beyond the set aside land (see [START_REF] Ignaciuk | Competition between biomass and food production in the presence of energy policies: a partial equilibrium analysis[END_REF]Treguer et al., 2005). Furthermore, land use and crop rotation will be disturbed because of the important need of oleic crops compared to sugar beet and cereals. Indeed, France faces a huge imbalance in fuel demand, which is much more oriented toward diesel than toward gasoline. As a consequence, and because refineries were initially gasoline oriented, French refiners are under pressure for their diesel production and need to import diesel mainly from Russia to meet the demand. Furthermore, as diesel and gasoline are joint products, refiners overproduce gasoline and need to export some to the United States. Biofuels allowing diesel substitution could probably release the pressure on diesel production but advantages for ethanol seem to be more limited. As biofuels are involved in several sectors, their development need to be coordinated. For this reason, the French government has set up a legislative and fiscal frame to promote biofuels with strong and ambitious biofuel production targets. The main objective of the present paper is precisely to study the French biofuel program for 2008, 2010 and 2012 by jointly conducting a market and a life cycle analysis of biofuels. Indeed, insofar as we consider that firms make decisions based on profit maximization and that there is no penalty on GHG emissions, life cycle assessment (LCA) should not be dissociated to the economic analysis. For this purpose, a French partial agro-industrial equilibrium model is coupled to a French refining sectoral optimization model, both based on linear programming (LP). Using marginal analysis, this tool is able to determine the agents' technico-economic interest for biofuels through a systemic and integrated approach. For each year, an LCA is carried out to asses the reduction of GHG emissions thanks to biofuel use. The use of linear programming models in such an analysis avoids the problem of emission allocation between joint products we meet in LCA methodology. In parallel, we study the amount of tax exemption needed for biofuels production in order to reach the government biofuel blending targets considering three crude oil prices. Tax exemptions are intended to compensate for the price gap between biofuel price and the corresponding fossil fuel price. It is precisely this price gap the two models allow us to determine through linear programming dual prices. We then discuss biofuel competitiveness. On the basis of a clear view of the individual economic choices and pollutant emissions along the biofuel production chains, planners should be able to tune their policies. This paper provides a long-run analysis in 2008, 2010 and 2012 using prospective scenarios. The innovative element of this methodology is the consideration of both biofuel supply and demand, along with environmental criteria such as reduction in GHG emissions when using biofuel in substitution for fossil fuels. The paper is structured as follows. Section 2 describes the French biofuel production chains and promoting policies. Section 3 presents the agro-industrial and the refining model as well as the coupling methodology. Section 4 describes how GHG emissions are accounted for. Section 5 describes the prospective scenarios and the results of their evaluations. Section 6 provides some conclusions.

FRENCH CONTEXT FOR BIOFUEL DEVELOPMENT

French biofuels production chains

Sugar beet and wheat for ethanol and rapeseed for VOME are the main biofuel crops produced by French farmers. These crops then follow a two-stage process in industries that transform agricultural products into biofuels. Once the biofuels have been produced, they are blended with fossil engine fuels by refiners or distributors. VOME is made from rapeseed (92% in quantity in 2003) and sunflower (8%) [START_REF] Oniol | Jachère industrielle. Campagne 2003/2004[END_REF]. After gathering and transport, crops are crushed in industries to produce vegetable oil. A coproduct, cattle cake, is also obtained and often valorised in breed feeding. The produced oil can be used for both human consumption and chemical engineering purposes. When biofuels are produced, vegetable oil is chemically processed with methanol into VOME. This stage also produces glycerine which after purification can be valorised in cosmetics and pharmaceutical products. Afterwards, a refiner is allowed to blend up to 5% in volume of VOME with diesel engine fuel and up to 30% in captive fleet engines. On the other hand, ethanol is produced by French farmers from sugar beets (78% in quantity in 2003), wheat (15%) or corn (7%) 2 . Sugar beets are bought by sugar industries in order to produce a sweet juice by diffusion. This sweet juice is generally used to produce sugar but it can also be used for alcohol production. As for wheat and corn, they are hydrolysed by enzymes or chemicals to obtain a fermentable mixture. This one is then fermented by yeasts and distilled to produce anhydrous ethanol. These stages coproduce sugar beet pulp and distilled dry grain solubles (DDGS) from wheat which are valorised in breed feeding. Refiners can then use bioethanol in two different ways: for direct blending up to 5% in volume or for ETBE production by chemical reaction with isobutylene. ETBE can then be blended with gasoline up to 15% in volume (ethanol : 7% in volume). Furthermore, since the beginning of year 2006, the E.C. has encouraged the use of E85 which is a blend of 85% of ethanol with 15% gasoline in dedicated engines. Nevertheless, this use remains marginal today. Biofuel profitability is linked to co-products valorisation. As observed for glycerine, the more biofuel produced, the less profitable because of co-product market saturation. The price for glycerine has thus dropped from 1,300 $/T in 2003 to 125 $/T in 20063 . Consequently, stakes are high in the search for other co-product outlets.

French biofuels promoting policies

In France, ethanol and VOME market development is highly dependent on promoting policies because of the lack of cost competitiveness of biofuel technology compared with the fossil fuel technology. Policy measures in support of biofuel have been set up at each biofuel production level and biofuel blending targets have been scheduled. At the upper level, the Common Agricultural Policy (CAP) reform of 1992 introduced a favourable context for biofuel development through the introduction of compulsory set-aside land. In this area, crops intended for human food production cannot be cultivated. It was initially planned to manage crop supply. Nevertheless, farmers are allowed to produce non food crops (including energy crops) on set-aside lands and benefit from a set-aside payment of about 63€/ha. The set-aside obligation was fixed at the rate of 10% of farms useful agricultural zone (AUZ) but it can be modified by the E.C4 . Traditionally confined to set-aside lands, energetic crops will obviously have to go beyond this area of about 1.5 Mha to reach European objectives. What is more, since 2003 farmers have been able to take advantage of a special aid of 45€/ha for energy crops if they produce crops intended for biofuel production on arable land. This aid is limited to 1.5 million hectares for the whole of Europe. At the halfway level, industrialists can benefit from an advantageous fiscal measure. After answering a European candidature call, an industrialist can receive tax exemption on fuel products from the French government. In fact, such industries receive an approval to produce a limited quantity of biofuels. In this way, the industries are sure to sell their biofuel productions to refiners who can benefit from tax exemption on the biofuel quantity used in substitution of taxed fossil fuels. In 2006, tax exemption amounts reach 33€/hl for ethanol used in direct blending or for ETBE production, and 25€/hl for VOME. In addition to these measures, more ambitious biofuel incorporation objectives have been set by the French government at 5.75% in energetic content 5 for 2008, 7% in blend for 2010 and 10% for 2015. These targets take the shape of the tax rate of the general tax on pollutant activities (TGAP) applied both on gasoline and diesel sales figures. This tax can be exempted in due proportion to the rate of biofuel blended with fossil fuel in energy content up to the targeted rate. The formula could be written as follows:

), ( )

( AT P Q BR TR TC EF EF + - = with EF BF Q Q BR = , until BR TR ≥
With TC: TGAP cost, TR: TGAP rate, BR: biofuel rate QBF : biofuel quantity, QEF : engine fuel quantity, PEF : engine fuel price.

For both ethanol with gasoline and VOME with diesel, for the refiner the TGAP cost represents the difference between TGAP rate reduced by the biofuel rate which is the quantity of biofuel proportioned with the corresponding engine fuel quantity. The remaining tax rate is applied to the engine fuel revenue corresponding to the quantity of engine fuel produced multiplied by its price added with some additional taxes (AT). Then if more biofuel is incorporated than the tax rate (BR>TR), no more tax exemption is given, but the whole TGAP is exempted.

In order to study possible biofuel market evolution and pollutant emission reductions due to biofuel use, a complete representation of biofuel production chains is necessary. The economic behaviour of farmers, industrialists and refiners have to be represented in order to study their economic interest in biofuels depending on the crude oil price as well as their GHG emissions. This approach was made possible by combining a French agro-industrial supply model with a French refining model6 .

LINEAR PROGRAMMING MODELS DESCRIPTION

French agro-industrial equilibrium model

General description

The French agro-industrial equilibrium model (OSCAR 7 ) is a partial equilibrium model based on linear programming. It is composed of a sequential multi-annual and regional agricultural supply model (MAORIE) combined with an industrial module (for further details on the agro-industrial model see [START_REF] Rozakis | Biofuel production system in France: an economic analysis[END_REF]. The objective function of the model is the maximization of joint profit for farmers and industrialists. Here farmers and industrialists constitute a complex with perfect coalition agents and the share of the internal surplus is not discussed. On the one hand, the MAORIE agricultural supply model determines crop selection decisions by farmers considering crop margins, farming and supply constraints. It represents more than 80,000 crop producing farms based on a sample of 1,379 elementary models of farm. These elementary models are characterized by different AUZ and crop yields representing French agriculture according to the Farm Accountancy Data Network (RICA). Each farm belongs to a French region and to one of two agricultural types with different crop choices, «cereal» production oriented (56% of farms) and «sugar beet» production oriented (44%). On this basis, seventeen crops or land uses8 are taken into account and differentiated according to: (1) the agricultural type;

(2) the region of the farm where the crop is grown;

(3) the preceding crop in cultural rotation; (4) the final use (human food or energy); (5) the growing area (inside or outside set-aside land). Furthermore, the MAORIE part of the OSCAR model is a sequential multi annual model from 2004 to 2012. The situation of a given year is based on the situation of the year before. Social and economic criteria, such as farming force, farmer ages, farmer fixed charges and gearing, farm size and stocking capacities, etc. For each farm, the age of the farmer and his gearing is calculated to orientate the development of the farm: continue its activity, make the farm available to other farmers or to other activities. Furthermore, CAP reforms and agronomic advancement in yields are taken into account for the 2004 to 2012 period. On the other hand, the industrial module is composed of global biofuel supply constraints for ethanol from wheat, sugar beets and VOME from rapeseed. Remaining marginal, biofuels produced from corn and sunflower are not taken into account in this paper. In addition, the following processing yields of biofuels and coproducts are applied to crops into biofuel supply constraints (see table 1.)

Table 1: Agro-industrial processing yields in kg.t -1

Variables, parameters and equations

The variables of the OSCAR model are crop-cultivated areas per farm, biofuel and co-product productions. In this model 7,500 variables are associated with 6,800 constraints [START_REF] Rozakis | Micro-economic modelling system in France to determine tax exemption policy under uncertainty[END_REF]. Main constraints concern land capacity, rotation of crops, fallow minimum and maximum requirements, crop and biofuel supplying, maximum land use by cereals, oilseeds, sugar beets, etc. The matrix of technical coefficients (yields), crop profits per hectare, biofuel prices, crop and biofuel subsidy amounts and also co-product prices are exogenous parameters.

The objective function maximizes farmers' profit with biofuel industrialists' profits. Aggregated farmers' profit is equal to each farm crop cultivation multiplied by profit per hectare. Industrial costs9 are composed of: (1) crop collecting costs;

(2) first industrial biofuels processing costs, i.e., oilseed grinding for cereals and sugar production costs for sugar beet;

(3) second biofuel processing costs, i.e., unitary variable costs of processing vegetable oil in ester and fermentable juice in ethanol; (4) blending costs; (5) profits from co-products.

In addition, the OSCAR model makes it possible to determine the opportunity costs associated with biofuel raw materials and biofuels productions. A detailed description of raw material and biofuel opportunity costs determination and concepts are on the scope of the paper of [START_REF] Sourie | Agricultural raw material cost and supply for bio-fuel production: methods and concepts[END_REF]. Sourie defined the biofuel raw material opportunity cost as «the marginal cost of the least efficient producer so as to reach the demand». The biofuel opportunity cost is given by the biofuel raw material opportunity cost added to the industrial biofuel production cost. It is given by the dual variable associated with biofuel demand constraints that are equal to the variation in the farming and industrial joint profit due to the production of an extra ton of biofuel (Treguer et al., 2005).

The main hypotheses of the model OSCAR are the following: (1) farmers are considered to be 'price takers';

(2) the agro-industrial sector is closed to imports; (3) co-product crop demands are considered totally elastic; (4) biofuel demand by refiners is totally elastic and their valorisation is fixed to corresponding fossil fuel prices. In addition, as the farming model is based on historic data (RICA), the only farms enable to produce a crop are the ones which have already grown this crop at present time or in the past. It can be viewed as a know-how patrimony or a climatic and pedologic potential. Nevertheless, farmers could choose to cultivate new crops if the economic signal is incentive. Then, marginal cost of biofuel production would probably decrease (especially for rapeseed production).

The aim of the coupling procedure between the OSCAR and the refinery model is to release the hypotheses 4 above. Comparison between marginal biofuel production costs and biofuel valorisation at associated engine fuel price has already been made by the Public economics department of INRA to determine tax exemption need considering uncertainty (see [START_REF] Rozakis | Micro-economic modelling system in France to determine tax exemption policy under uncertainty[END_REF] or not (see [START_REF] Rozakis | Biofuel production system in France: an economic analysis[END_REF]. However, these previous works suppose the existence of a linear relation between crude oil prices and engine fuel market prices. In fact, the complexity of refining shows that such relations are not obvious. In addition, biofuel production are supposed to be sold at their associated engine fuel market price. In fact, the refiner willingness to pay for biofuels can be different from engine fuel prices. Consequently by releasing the hypothesis 4 thanks to the use of the refining model we are able to take into account the refining complexity and improve our understanding of biofuel markets.

The French refining model

General description

The French refining model is a mono-refinery optimization model based on linear programming 10 . This model can be used for short-run and long-run determination of the refining flow chart. In the first case, annual refining costs are composed of operating variable costs of the various refining units (chemicals, utilities...). For long-run analysis, capital expenses (investments) and fixed costs (maintenance, labour...) are added to the previous costs. The objective function allows former cost minimization under several constraints: end-product demands and specifications, refining capacities, crude oil supply and pollutant emissions (CO 2 , SO 2 ). The refining model determines end-product blend compositions, utility consumptions, investments, imports and exports but also marginal production costs, marginal costs related to specification constraints, CO 2 and SO 2 total emissions from the refinery. An exhaustive description of the refining model is provided in Saint-Antonin (1998).

Variables, parameters and equations

Physical flows between refining units from crude oil to end-use oil products along with pollutant emissions (CO 2 , SO 2 ), utility uses, investments, imports and exports are the main variables of the refining model in our long-run analysis. In the French refining model, crude oil provisioning is schematized by four representative crude oils (Brent, Arabian Light, Arabian Heavy and Forcados) [START_REF] Khebri | Modélisation et optimisation des capacités et des structures du raffinage européen aux horizons 1995[END_REF][START_REF] Saint-Antonin | Modélisation de l'offre de produits pétroliers en Europe[END_REF]. Crude oils are then processed by refining units (distillation, cracking, visbreaking, hydro-treatment units...) in order to produce various refined products (propane, butane, naphtha, gasoline, jet fuel, diesel, domestic fuel, heavy fuel, bitumen...). In the model supply ratios, capacity of the units, end-product demands, market prices, technical specifications and the data matrix of technical coefficients (intermediary products and utility yields for each unit) were fixed as parameters. Main constraints are presented on table 2. The main hypotheses inherent to the refining model are: (1) refiners are considered as 'price takers'; (2) biofuel buying prices, generally obtained from the market price do not reveal real biofuel opportunity cost of production. Hypotheses (2) is released thanks to the following coupling procedure.

Biofuel concern

In order to handle the biofuel question, the use of biofuel by refiners is considered to be only constrained by the respect of fuel specifications. We do not fix a maximal biofuel blending rate as it is imposed by regulations (5% blend in volumen). Indeed it is obvious that this regulation is not consistent with the blending target objectives. It is, for example, impossible to comply both with the minimum 5.75% blending target in energy in 2008 and the 5% maximum blending target in volume for ethanol and VOME, and the E.C. is presently revisiong this regulation.

Nevertheless, the maximum blending regulation can be justified by the evolution of ethanol/gasoline mix volatility when the share of ethanol increases. Some adjustments of the refining model were necessary to enable the refiner to take this phenomenon into account.

For this purpose, integer variables were used to perform the modeling of non-linear volatility properties of ethanol mixed with gasoline. Indeed, gasoline/ethanol blend volatility depends on ethanol proportion. This property is often a barrier for ethanol incorporation in gasoline because of gasoline specifications. Nevertheless, as shown on figure 1, after a 6% blend in volume Reid vapor pressure of ethanol/gasoline blend decreases. Consequently, the non-linear rule of ethanol and gasoline mix volatility might allow refiners to incorporate more ethanol in gasoline.

Source : Lyons et Delaney, 2000

Figure 1: RVP Impacts of Adding Ethanol to Gasoline

However the refiner can also use ethanol to produce ETBE and blend it with gasoline up to 15% in volume. Concerning VOME, nothing seems to constraint incorporation in diesel up to 8% in volume, all the more that it can be used up to 30% in captive fleet. Furthermore, as the general tax on pollutant activities is very dissuasive for refiners, it is assumed that they will incorporate the total amount of biofuel this tax induces, and no more because by doing so they would not benefit from the tax exemption elsewhere. The dual variable associated with the biofuel demand constraint provides an important information for determining the tax exemption need. Indeed, these dual variables could be interpreted as the long run marginal production costs of the refiners. In other words, these dual variables represent the refiner willingness to pay, i.e. the maximum price, for having one more ton of biofuel.

The coupling procedure

The coupling procedure implemented in this work11 finds its origin in the obvious complementarity between the agro-industrial model and the refining model to give a realistic representation of the whole range of biofuel production chains and final use. For each year considered in the following prospective analysis, we run an external coupling procedure with coordinated simulations between the two models. The minimum tax exemption needed to place on the market the targeted quantity of biofuel can thus be determined. It also provides the LCA with some data resulting of the agent economic choices. Three optimizations are required. The one for the agro-industrial model obliges farmers and industrialists to produce the targeted quantity of biofuels. Two successive optimizations 'with' and 'without' biofuel use are then undertaken with the refining model. In both cases, the long-run analysis of the refining activity will reveal how the refiner meets the same end-product demands minimizing its costs. The situation 'without' biofuel means that the refiner is not allowed to incorporate biofuel in order to answer his oil end-product demands. He can use methanol to produce MTBE, an other oxygenate component produced from fossil sources which improves the quality of gasoline in a similar way than ETBE. In the situation 'with' biofuels, he can use ethanol in direct blending with gasoline or produce ETBE. Nevertheless, in this case refiners can no more produce MTBE since French refiners usually convert their MTBE units in ETBE units to incorporate ethanol. The refiner can also incorporate EMHV in direct blending with diesel.

The procedure is as follows for each year and each crude oil price considered:

1. Optimizing the OSCAR model 'with' biofuels to obtain the agro-industrial marginal cost to produce the targeted quantities of biofuel. The cultivated area of biofuel crops are also noticed for the LCA;

2. Optimizing the refining model 'without' biofuel in order to record crude oil demand and CO 2 refining emissions when end-product (fuels) demands are met by fossil sources;

3. Optimizing the refining model 'with' biofuels in order to obtain the refiner's willingness to pay for the ultimate ton of biofuel it has to incorporate. Furthermore, the model determines also the crude oil demand and the CO 2 emissions from the refining activities when using biofuels.

Figure 2: Tax exemption determination by coupling procedure

Post optimization calculations using both model outputs are then necessary to determine the minimum tax exemption amounts (TaxEx min ) the planner has to set up in order to reach biofuel targeted quantities (Q target ) for each production chain (see figure 2). This value is obtained by the difference between the cost of the last ton of biofuels the industries have to produce (optimization 1) and the refiners' willingness to pay for the ultimate ton of biofuels he has to demand (optimization 3). In short, the government should have to compensate the gap between the agro-industrial marginal cost of biofuel production (mC agr ) and the marginal revenue of biofuel for refiners (mR ref ). We determine a 'minimum' tax exemption because, by seeking a long-run equilibrium, we assume that refiners are completely free to invest in the refining units they need. The refining model is a deterministic model and consequently refining investment decision does not take into account uncertainty. In fact refiners cannot invest as freely as it is supposed in this paper.

ACCOUNTING FOR GHG EMISSIONS REDUCTION

LCA methodology

LCA enables to evaluate the environmental impacts caused by an asset production, use and end of life or a process. Thanks to this method, it has now been proved that biofuels used in substitution to conventional fossil fuels reduce GHG emissions (see ADEME et al., 2002;[START_REF] Eucar | Well-to-wheels analysis of future automotive fuels and powertrains in the European context[END_REF]. Nevertheless, assessments are still controversy due to the diversity in their results. The main interest of the LCA provided in this study is the use of the farming and refining LP models which differ from current LCA. Thus, we bring more precise information on the farming and the refining steps in the estimation of the potential GHG emission benefit thanks to biofuels use in the French transport sector. This approach makes it possible to give more accurate information on the technico-economic choices of farmers and refiners and to avoid the question of emissions allocation between gasoline, diesel and all co-products of the refinery (for allocation purpose see e.g., [START_REF] Babusiaux | Allocation of the CO 2 and pollutant emissions of a refinery to petroleum finished products[END_REF][START_REF] Pierru | Allocating the CO 2 emissions of a oil refinery with Aumann Shapley prices[END_REF][START_REF] Nejad | Allocation of CO 2 emissions in joint product industries via linear programming: a refinery example[END_REF].

In order to realize the biofuel LCA, two scenarios are compared. A «Business as usual» scenario, where GHG emissions are evaluated for the whole fuel production and utilization chain, and it is supposed that no biofuels are consumed. And a «Biofuel use» scenario where the influence of biofuel incorporation on GHG emissions is assessed. On this basis, we follow the 4 main steps of the LCA method:

1. Goal and scope definition, where the objectives of the study for an attempted utility are described;

2. Inventory, where a flow diagram is used to describe physical flows like emissions and the use of raw material in order to obtain the attempted utility;

3. Impact assessment, where the previous flows are gathered into impacts;

4. Interpretation, where the various scenarios are compared.

In order to compare the two main pathways, conventional fuels and biofuels, several steps from material extraction to final use of fuel are distinguished (see figure 3). For each step, energy consumption and GHG emissions are estimated. The difference between the whole GHG emissions of each scenario gives the potential GHG emission reduction due to biofuels in France. This calculation is made for the three time frames we are studying (2008, 2010 and 2020) and for a 70$/bbl crude oil price. 3). In the agricultural sector, the GHG emissions from energy consumption as well as emissions of N 2 O are taken into account. However, the impact of infrastructures and services are supposed to have a minor impact on the final result. The two scenarios we compare refer to the French situation, regarding in particular electricity mix and energy supply. Nevertheless, technologies are supposed to remain the same between the three scenarios studied (2008, 2010 and 2012).

Conventional pathways

The GHG balance of conventional gasoline and diesel pathways relies on the results of the refinery model, namely the total amount of final fuel produced (and consumed), the quantity of crude oil used, by region of import, as well as the total amount of CO 2 emitted by the refinery for fuel production. Crude oil need, which is given by the refining model, enables the evaluation of crude oil production GHG emissions. By summing the previous GHG emissions we obtain the well-to-tank GHG emissions.

Extraction and treatment of crude oil are considered as one single step. 96% of external energy consumptions are supposed to come from natural gas (62%), electricity (19%) and diesel oil (15%). The remaining 4% come from residual oil (2%) and gasoline (2%) (GMC et al., 2001).

Energy consumptions considered in this study are limited to associated gas (a part is supposed to be used for electricity generation, with a yield of 31%) and diesel oil. Total energy consumption for crude oil extraction account for 2.3% of the energy content of produced oil. Losses during crude oil extraction have also been taken into account at a rate of 0.37% (GMC et al., 2001). It is supposed that there is no methane leakage, associated gas is either flared or used for energy consumption on site. Gas flaring is estimated for each region and vary from 2.6 m 3 /t of crude oil in the North See to 9.5 m 3 /t in Sub-Saharan Africa. GHG emissions of crude oil transport relies on energy consumption during transport. Crude oil is transported either by pipelines or by tankers. Three transport steps have been considered:

• from oil field to the export place, by pipelines;

• from export place to the import place, by tanker or pipelines;

• from import place to refineries, by pipelines.

Pipelines length for transport from oil field to the export place have been estimated from (CPDP, 2004). The total distance is then calculated as the average distance, weighted by total oil import by region. It is supposed that energy for crude oil transport comes from fuel-oil. Onshore pipelines are supposed to consume 2.4.10 -3 MJ/(t.km) and offshore pipelines 0.48 MJ/(t.km). We also use average distances between import and export places, that have been estimated from CPDP (2004). The total distance is then calculated as the average distance, weighted by total oil import by region. Traffic breakdown is based on [START_REF] Hawdon | The World Tanker Market: Analysis and Prospects[END_REF]. Two types of tankers have been used : 100, 000 tons and 300, 000 tons. Their energy consumption have been evaluated by The Green Tankers, Franceship Armement and Total Maritime Direction. Energy is supposed to come from fuel oil. Finally, the average distance between import place and refineries have been calculated with distances covered by pipelines networks and annual transport capacity. Energy is used as electricity and the consumption is supposed to be 2.4.10 -3 MJ/(t.km) [Source: Société du Pipeline Sud Européen].

Leakage or evaporation of hydrocarbon during transportation are also included in the calculation.

There are few data on losses of hydrocarbons. Data used in this study are reported on table 4. The GHG emissions of the refining activity are provided by the refinery model. They are mainly due to the use of energy by refining units. Refining units are supplied with various utilities such as fuel, electricity, high pressure vapour or low pressure vapour or even natural gas. The flow chart obtained by optimization makes it possible to determine the use of each unit use and their needs for each utility. Thus, GHG emissions from the refinery are given by the model. Then fuels are transported either by pipelines, trucks, trains or barges. France uses mainly pipelines. Distribution network of liquid fuels from refineries to delivery stations was modeled in CPDP ( 2004). Fuel transportation by barge is supposed to consume 0.25 MJ/(t.km) as fuel-oil, by rail 250 L/100 km as diesel oil or 16.1 kWh/km as electricity. Trucks are supposed to consume 32.8 L/100 km as diesel oil. No fuel leakage has been taken into account for fuel distribution. This step is common to conventional diesel and gasoline, and biofuels.

Biofuel pathways

Three biofuel pathways are evaluated: (1) ethanol or ETBE from sugar beet; (2) ethanol or ETBE from wheat;

(3) VOME from rapeseed. Concerning the biomass cultivation step, carbon stored in agricultural soils (see table 5) and GHG emitted by farming are taken into account. Farming GHG are mainly due to energy consumption (trucks...) and fertilizers and phytosanitary use (especially for N2O emissions) (ADEME et al., 2002). The harvested biomass is then supposed to be transported by truck. Biofuel emissions are allocated using the «substitution» method, i.e. all the emissions of the conversion process are allocated to the biofuel and a credit for the use of coproduct in breed feeding or glycerine production is then deducted [START_REF] Eucar | Well-to-wheels analysis of future automotive fuels and powertrains in the European context[END_REF]. [START_REF] Wylleman | Caractérisation et modélisation de l'évolution des stocks de matière organique dans les sols de grande culture en Picardie[END_REF] Regarding biofuel transportation to the refinery, two different schemes are used: ethanol is supposed to be transported by train to the refinery, on an average distance of 350 km and VOME is supposed to be transported to the refinery by truck for 7% (on an average distance of 400 km), by train for 28% (400 km) and by barge for 65% (60 km) (ADEME et al., 2002). The incorporation step in the refinery is supposed to have an impact only for ETBE which is produced from ethanol and isobutylene in the refinery (see table 6).

Vehicles energy consumption and GHG emissions

Final emissions of vehicles with fuel use are estimated with average data, considering that only conventional fossil fuels are causing GHG emissions and that biofuels are «CO 2 neutral». The average GHG emission is taken as 140 g eCO 2 eq/km (for a consumption of 190 MJ/100 km) for gasoline and as 128 g eCO 2 eq/km (for a consumption of 172 MJ/100 km) for diesel oil.

FRENCH BIOFUEL PLAN EVALUATION IN 2008, 2010 AND 2012

Prospective scenarios description

In order to study the French biofuel plan, three scenarios were built. One for 2008, one for 2010 and one for 2012. They dealt mainly with technological improvements, prices, policies and demands in relation with biofuel production chains.

The French biofuel plan

The French biofuel plan imposes the following rates in fossil fuels blending objectives by means of the general tax on pollutant activities (see table 7).

Table 7: Biofuel incorporations targeted by the French government in 2005

In this work we assume that ethanol production is equally divided between wheat and sugarbeet. Considered using gasoline and diesel demands, the biofuel blending rates provide the biofuel quantity the French government wants to place on the market. It is for these biofuel quantities, the quantities farmers and industrialists have to produce and refiners have to incorporate, that we will calculate the minimum tax exemption the government has to set up as well as gain in GHG emissions.

Price considerations

Dealing with prices, we decided to study three different crude oil price scenarios for each year using correlations rather than forecasting price evolutions. Three Brent crude oil price were studied: 50$/bbl, 70$/bbl and 90$/bbl. The price of 70$/bbl is our middle price scenario because on august 12th 2005, Brent reached the price of 67$/bbl and this price has been increasing since 2003. We can note that since April 2006, the Brent crude oil price has passed the price of 70$/bbl. In the refining model, correlations, based on IFP sources, were necessary to evaluate the impact of different crude oil price scenarios on petroleum product prices. In addition, the agro-industrial model does not take into account changes in farmers production costs when the crude oil price varies. Concerning co-products, some hypotheses on their prices have been drawn up. The prices which have been retained correspond to the 2005 market situation and we assume these values to remain constant until 2012. Glycerine is priced at 125$/T, cattle cakes at 150$/t and DDGS at 112$/t.

Industrial units evolutions in technology

In this work, we assume that the technology can be improved. Nevertheless, new technologies cannot emerge. Thus, biofuel technology can become more efficient thanks to scale effects and the refiner is capable of improving its technology by investing, especially, in hydro-technologies.

Processing yields in biofuels and co-products depend on the year we are considering in order to represent technology improvement. It is considered that VOME technology will be mature as early as 2008, whereas ethanol technology is expected to become more efficient between 2008 and 2010. Different processing costs based on unit sizes were implemented as shown in the following table 8 (see [START_REF] Mavrotas | Modeling of new bio-fuel units with integer variables in order to take into account economies of scale[END_REF].

Table 8: Industrial production cost evolutions expected in 2005

Source : IFP

Fuel specifications and demand evolutions

In order to evaluate the French petroleum end-product demands a predictive model based on trends and linear programming is used. Engine fuels demand, gasoline and diesel, were in particular estimated according to parameters based on the fleet and the freight traffic (Rozakis et al., 2005). On this basis, the engine fuels demand is supposed to emphasize the imbalance in favour of diesel. Apart from diesel, the other end-product demands are expected to decrease (see table 9). Furthermore, fuel specifications will become more stringent concerning sulphur content and other particles.

Table 9: petroleum parameter evolutions expected in 2005

Source : IFP

Results and discussion

Main results deal with biofuel crops land use, biofuel competitiveness and tax exemption need to favour biofuel development as well as GHG emission reduction assessment thanks to biofuel use. Biofuel crops land use If we consider the need of land for biofuel crop productions, we can observe that as early as 2008 the entire French set-aside land of about 1.5 Mha will be slightly insufficient to insure the biofuel production targeted by the government (see table 10).

Table 10: Land need for biofuel crops production from the agro-industrial model (Mha)

As soon as biofuel production exceeds the extent fallow lands, competition for energy and food land use arises (Treguer et al., 2005;[START_REF] Ignaciuk | Competition between biomass and food production in the presence of energy policies: a partial equilibrium analysis[END_REF]. VOME and ethanol crops show different evolutions. The more rapeseed is to be produced, the more food crops have to be abandoned by farmers. As food crops are generally more profitable than biofuel crops, the marginal rapeseed cost of production increases (see table 11 and figure 4).

Figure 4: Biofuel rapeseed supply curve

For each year we have great change in rapeseed marginal cost because of the high demand on rapeseed which imposes farmers to first exceed the set-land land, then substitute a first food crop, then a second, and so on.

Marginal production costs of ethanol crops are more stable. They remain the same for wheat (mC=0,37€/l) and nearly the same for sugar beets. The slight decrease for in sugar beet marginal cost is due to CAP reform12 . For wheat and sugar beet, the demand for biofuel is less important and the same crop is substituted from 2008 to 2012. For this reason the marginal cost remains the same.

Tax exemption results

Table 11 shows the results of the coupling procedure. When minimum tax exemption is negative, then there is no need for tax exemption because biofuels are competitive and both refiners and farmers would use more than the targeted quantity. What appears first is that biofuel competitiveness depends on crude oil price and fuel demand (years). As we can see, through the years the marginal quantity of VOME become less and less attractive whereas from 2008 and 2010 the competitiveness of ethanol is much better. Two reasons explain such results. On the one hand, the agro-industrial marginal costs of VOME production will increasing because of the high demand of rapeseed dedicated to biofuel production whereas the sugar beet marginal cost13 will decrease in 2010 because of the Common Agricultural Policy reform. On the other hand, refiners seems to be more interested in VOME than in ethanol because of the imbalance in fuel engine demand. The biofuel marginal revenue will increase with the crude oil price as well as with the increase in demand. As a consequence of these two evolutions, VOME appears much more competitive than ethanol in 2008 whereas the VOME marginal quantity becomes less competitive in 2010 and 2012. We can note that ethanol is not competitive with gasoline production in 2008 for any crude oil prices below 90$/bbl whereas in 2010 and 2012 ethanol begins to be competitive for a crude oil price above 70$/bbl. VOME will be very competitive with fossil diesel production in 2008 for a price near to 70$/bbl what is at present the case. In 2010, VOME becomes competitive for a crude oil price of about 90$/bbl whereas in 2012 it is not profitable to impose the volume required. Nowadays, as the French government wants to give a strong incentive to the various agents of biofuel production chains in order to promote a sustainable development of biofuels, the tax exemptions were set up at 25€/hl for VOME and 33€/hl for ethanol. Nevertheless, the question of the optimal management of tax exemption amount is rising for policy efficiency purposes. And as it is shown in table 11, the determination of the optimal tax exemption amount would have to take into account the crude oil price as well as the year we consider (petroleum product demand and specifications). Thus, in the future the ethanol tax exemption might be reduce whereas VOME one might increase.

LCA results

The results of LCA show that the use of biofuels could help save, over the complete chain from crude oil extraction or biomass cultivation to fuel use, between 7 and 11 Mt CO 2 equivalent (eCO 2 ) by year, depending on the year considered. Thus, biofuels would make an average reduction of 5% in GHG emission possible compared with the «Business as usual» situation (see table 12).

In table 13, a comparison of GHG emissions savings thanks to biofuel use is provided by step.

Positive figures correspond to GHG emission reduction and negative ones to GHG emission increase.

Table 12: Overall GHG emissions reduction obtained by the use of biofuels

The major part of emission reductions occurs at the fuel use in the car. In fact this GHG emission saving is due to the CO 2 recycling by plants, i.e. the CO 2 emitted by biofuel combustion is partially sequestrated by plants during photosynthesis. Despite the fact that carbon storage in soil is taken into account, the (crude oil and farming) production step implies more emissions 'with' biofuels than 'without', because of the cultivation step. Processing contribution in GHG emissions, accounting for biofuel and refining processes, can be either positive or negative. On the one hand, GHG emissions should increase because of the biofuel production by industries but, on the other hand, refineries are expected to reduce their GHG emissions thanks to the use of biofuel reduces their fossil fuel demand. In fact this second assumption is not necessary true because the refining investments (each unit having a specific need in energy from various sources) and the flow chart 'without' and 'with' biofuel is different. Consequently, the use of biofuels by refiners do not necessary decrease GHG emissions in the refining process. Further research should be undertaken to determine biofuel influence on refining investments and, thus, GHG emissions. Nevertheless, considering the whole pathways, biofuels always allow GHG emission savings. Furthermore, the distribution step contribution to GHG reduction is null because the same quantity (in tons) of fuel will be distributed in the two scenarios.

Table 13: GHG emissions reduction between the two scenarios by step (Mt eCO 2 /yr)

The calculation of possible GHG emissions reduction on the entire life cycle by the introduction of biofuels shows that the objectives set by the French Government in 2004 (Plan Climat 2004) are realistic. These objectives are indeed to reduce by 7 Mt eCO 2 the emissions in the road transport sector by 2010 by the use of biofuels.

CONCLUSION

An economic and environmental analysis of the French biofuel plan in 2008, 2010, 2012 is made using the coupling procedure between agro-industrial and refining LP models developed by Rozakis et al. (2005). This plan is efficient concerning GHG emission reduction nevertheless it could nevertheless probably be better tune in the public economics sphere. Biofuel can become competitive with fossil fuels production for the refiner depending on the crude oil price and petroleum product demand. Today, VOME is already more or less competitive but the high demand in rapeseed may decrease the economic appeal of the marginal quantity of VOME required by the French government. Ethanol production does not seem very competitive because of the imbalance in engine fuel demands. Nevertheless, new biofuel technologies and high crude oil price can makes biofuels become more competitive.

In addition, biofuel use makes it possible to save about 5% of GHG emissions in the road transport sector in comparison with the «Business as usual» situation. The gain is especially due to the CO 2 recycling by plant.

Figure

  Figure 3: LCA sheme

Table 2 : Refining model composition

 2

10 developed by the IFP from original OURSE TM (Economics Studies Division, IFP).

Table 3 : Global warming potentials of the GHG assessed in this study (g eCO 2

 3

/g)

Source:

[START_REF] Ipcc | Climate Change 2001: The Scientific Basis. Contribution of Working Group I to the Third Assessment Report of the Intergovernmental Panel on Climate Change[END_REF]

Table 4 : Oil spills during transportation (ppm)

 4

Source: IFP, Oil spills intelligence report, Concawe and ITOPF

Table 5 : Coefficients of carbon sequestration in the soil by different crops

 5

* estimated by the INRA Source :

[START_REF] Boiffin | Systèmes de culture et statut organique des sols dans le Noyonnais : application du modèle de Hénin-Dupuis[END_REF]

;

Table 6 : Energy consumptions for ETBE synthesis (7.4 t ETBE/h)

 6

	The chemical reaction of ETBE production is as follow:
	0.47 t Ethanol + 0,53 t Isobutylene . 1 t ETBE

Table 11 : Biofuel tax exemption results in €/hL

 11

Expended version of a talk presented at the

29th IAEE Conference in Potsdam, Germany, June 2006 (see[START_REF] Bernard | Agro-industrial and refining model integration for decision making purposes concerning biofuel take-off[END_REF].

While sugar beets represent 24% of the cultivated area of bioethanol crops, wheat represents 68% and corn 8%.

Kingsman biodiesel report (22 march 2006)

In 2004, it was fixed at

5% because of 2003 dryness.5 The energetic content is expressed in net calorific value (NCV), i.e., amount of heat released by complete combustion of a unit weight of fuel.

Both models are written in GAMS code[START_REF] Brooke | GAMS, A User's Guide[END_REF].

OSCAR: 'Optimisation du Surplus économique des Carburants Agricoles Renouvelables'; model developed by the the Joint Research Unit in Public Economics, (INA-PG / INRA), Grignon.

Wheat, hard wheat, sugar beet, rapeseed, potato, pea, sunflower, oats, soya bean, winter barley, barley, maize, sorghum, horse bean, linen, lucerne and fallow.

data based onRozakis et al. (2005)

The present coupling procedure was developed in an ADEME project joining INRA, IFP research teams. For further details seeRozakis et al., 2005

Mainly a «39 percent price cut over two years beginning in 2006/07 to ensure sustainable market balance» (E.C., 2005). In fact the change in sugar beet marginal cost should occur just before 2008 whereas in our modeling it occurs just after 2008.

As the ethanol marginal cost from sugar beet is higher than the one from wheat (0.37 €/hl), we retain ethanol from sugar beet marginal cost to determine the minimum tax exemption need.

Acknowledgement

The authors are grateful to J.C. Sourie and D. Treguer of the Public Economics Joint Research Unit of the INRA from France, Stelios Rozakis of the Agricultural Economics Department of the Agricultural University of Athens from Greece, Valérie Saint-Antonin, S. His, J.-F. Gruson of the Economics Studies Division of the IFP from France, who built the basis of this work thanks to the final support of the ADEME in the frame of the AGRICE project (see Rozakis et al., 2005). I also thanks A. Pierru (IFP), J.C. Sourie and P.A. Jayet (INRA) for their follow up in the frame of my PHD.


Martin Calisto

The Buen Vivir: A National Policy to Survive the Anthropocene?

This article examines the ideology and the politics of buen vivir as the government of Rafael Correa in Ecuador has implemented them from 2007 to 2013. The analysis focuses on the implications of this model, which is based on traditional Andean worldview. The article first explores the main components of buen vivir including its focus on strengthening democratic participation and environmental justice. Secondly, the implementation of this ideology is analysed through a review of the new constitution and government policies. Thirdly, key outcomes are assessed through various social and economic indicators. Fourth, a critical approach to the government's interpretation of buen vivir is taken and the many contradictions and inconsistencies in its implementation are unfolded. Nevertheless, the policies of buen vivir have the potential to create innovative and inspiring solutions, especially in the face of the environmental and social challenges brought by the anthropocene.

The anthropocene 1 has brought new and profound global challenges. As we begin the 21 st century, the social and ecological foundations of human society are being seriously threatened. Global warming, the destruction of vital ecosystem services and continued resource depletion are leading towards an increasingly severe environmental crisis. At the same time, global inequalities are alarmingly high and are growing both within and between countries. Despite unprecedented technological developments, in 2010, 49 per cent of the world remained in poverty, living with under US$2.50 per day (PPP) (World Bank, 2014) and the global Gini coefficient was as high as 70% [START_REF] Milanovic | Global Income Inequality in Numbers: in History and Now[END_REF].

Worst of all, policies in many countries are replicating a form of development which is further aggravating these issues. In fact, it has been argued that neoliberal policies imposing economic austerity, liberalization and deregulation have led to ever-greater levels of disparity [START_REF] Nayyar | The financial crisis, the great recession and the developing world[END_REF][START_REF] Fitoussi | On the Measurement of Social Progress and Wellbeing: Some Further Thoughts[END_REF]. These same policies have also exacerbated the continued destruction of the natural world [START_REF] Foster | The Ecological Rift: Capitalism's War on the Earth[END_REF]. If humanity wants to survive the anthropocene, a re-conceptualization of our model of civilization is in order.

In the face of these challenges, Ecuador is implementing an alternative to mainstream visions of development based on the indigenous concept of buen vivir (or sumak kawsay in Kichwa). Buen vivir can be directly translated as 'living well', yet it is built on a completely different conceptual basis than hegemonic visions of wellbeing. Seeking to create harmonious relations between and within people, nature and society, a more accurate translation of buen vivir would be 'harmonious coexistence' [START_REF] Acosta | La renovación de la crítica al desarrollo y el buen vivircomo alternativa[END_REF]. Since the election of Rafael Correa as president in 2007, Ecuador has attempted to embrace this concept as the basis for the national framework of social and economic policy. This article examines the meaning and the application of buen vivir in the Ecuadorian scenario 1 .Human impacts on the natural world have been so significant that various academics have argued that we have created an entirely new geological epoch: the anthropocene. The timing of the start of the anthropocene is still debated, with some arguing for its beginning during the industrial revolution of the late eighteenth century while others suggest that it should be linked to the rise of agriculture in the Neolithic revolution (around 10,000 B.C), making the term closely synchronous to the Holocene.

in order to uncover the potential it has in solving the challenges brought by the anthropocene.

What is Buen Vivir

Buen vivir is an inherently pluralistic concept. While its roots emanate from Andean cosmovision, it has evolved beyond native cosmology by incorporating alternative ideologies from the western world [START_REF] Hidalgo-Capitán | Seis debates abiertos sobre el sumak kawsay[END_REF]. Mixing with ecological, poststructuralist, socialist and radical democratic voices, buen vivir is built on a rich diversity of ontologies and teleologies united in the creation of an alternative to hegemonic visions of development [START_REF] Escobar | Sustainability: Design for the Pluriverse[END_REF]. The concept is thus in continuous debate and reinvention, while placing no culture or ideology above any other. This is what Esteva calls 'radical pluralism' leading to 'a world in which many worlds can be hospitably embraced ' (2010, p. 67).

Although there is no definitive conception of buen vivir, it has core elements that can be found in all its definitions 2 . First buen vivir does not create a conceptual divide between nature and society. This is why Gudynas calls it a biocentric rather than anthropocentric ideology (2011). Instead, nature is conceptualized as pachamama, (mother earth), the source of all life, of which humans are an intrinsic part [START_REF] Houtart | El concepto de Sumak kawsay (buen vivir) y sucorrespondencia con el bien común de la humanidad[END_REF]. Buen vivir thus places people as equal inhabitants of the earth, sharing the same limited yet plentiful environment. This symbiotic relationship with pachamama, leads towards the creation of a mode of life in harmony with the natural cycles of life and death. The ideal envisioned by buen vivir is thus in direct opposition to the extractivist consumerism of industrial capitalism [START_REF] Acosta | El Buen (con) Vivir, una utopiá por (re)construir: Alcances de la Constitucioń de Montecristi[END_REF]. In contrast, buen vivir promotes organic agriculture, renewable energy, ecotourism and recycling as the 2 There is a theoretical divide between a more ancestral notion of sumak kawsay and its postmodern transformation into buen vivir [START_REF] Hidalgo-Capitán | Seis debates abiertos sobre el sumak kawsay[END_REF]. The length and scope of this survey article does not allow for a more profound analysis of this distinction and will thus use buen vivir throughout.

basis for an economy in which people and nature can flourish from each other's cycles (SENPLADES, 2009).

Buen vivir is also founded on strong communitarian aspects, proposing a progressive vision of social and environmental justice. Promoting both distributional and procedural justice, buen vivir fosters a greater social control over the government and the means of production [START_REF] Acosta | La renovación de la crítica al desarrollo y el buen vivircomo alternativa[END_REF]. Buen vivir hence aspires for a radically democratic society where people have a meaningful power over political and economic forces. Co-operative economic structures and active citizen participation in political decision making are thus promoted as ways to reorganize society 'from the bottom up' [START_REF] Esteva | From the Bottom-up: New institutional arrangements in Latin America[END_REF].

Finally, buen vivir is conceptualized under a vision of happiness that reaches beyond the material accumulation and individualism typically endorsed by capitalism [START_REF] Hidalgo-Capitán | Seis debates abiertos sobre el sumak kawsay[END_REF]. Less emphasis is placed on hierarchy and competition: while more is placed on solidarity, reciprocity and citizenship as a whole. Buen vivir is thus closely related to concepts of degrowth and slow economy, aiming to create a future that seeks human emancipation in a holistic and sustainable manner [START_REF] Acosta | El Buen (con) Vivir, una utopiá por (re)construir: Alcances de la Constitucioń de Montecristi[END_REF].

Buen Vivir in Ecuador

When president Correa won power in 2007, the country, much like the continent, was going through a turbulent period. Years of neoliberal reforms and neo-colonialism had left a depressed economy with high levels of poverty and inequality [START_REF] Walsh | Development as Buen Vivir: Institutional arrangements and (de)colonial entanglements[END_REF]. This led to rampant violence and insecurity as well as a political instability that saw as many as eight different presidents in the eleven years prior to Correa's election (Polga-Hecimovich, 2013, p. 136). At a time of disillusionment towards global capitalism, Correa allied with indigenous movements, which were proposing buen vivir as an increasingly appealing alternative. Correa was thus elected based on a platform of change, and 'socialism of buen vivir'.

One of the first priorities was to turn the page from the 1998 neoliberal constitution and design a new one. Alberto Acosta, a leading academic of buen vivir became the president of the constituent assembly and designed it as 'the roadmap for the construction of a utopia ' (2010,p. 24). The new constitution thus set buen vivir as the foundational principle of the new nation. Its preamble clearly states its objective: to create 'a new form of public coexistence, in diversity and in harmony with nature, to achieve the Buen Vivir'.

The constitution establishes and guarantees the 'rights of buen vivir' (Articles 12-34); an interrelated set of rights and responsibilities necessary for the realization of buen vivir. These innovative rights include universal healthcare and education (including university), food, energy and economic sovereignty, a healthy environment, communication and participation, as well as the right to water and housing.

Moreover, these rights are balanced with responsibilities, both towards nature and society. There is thus a mutual responsibility for citizens and the state in the construction and maintenance of the social and environmental fabrics that enable the achievement of buen vivir. Citizens have the key social responsibility to be involved in the political life of the nation. This establishes the groundwork for the creation of a pluri-national state, governed through a participatory form of democracy 395,398).

Another unique feature of the constitution is that it has granted rights to nature (Articles 71-74). In fact, 'pachamama, where life is reproduced and realized, has the right to full respect for its existence and maintenance and the regeneration of its natural cycles, structure, function and evolutionary processes' (Article 71). This gives the Ecuadorian constitution a biocentric perspective, beyond the western anthropocentric conception of rights.

Finally, the constitution seeks to create a form of social contract, linking citizens, the government and the market in the collective pursuit of buen vivir. It thus builds on the notion of 'social economy', based on cooperative and associative modes of production pursuing fairness, equity, economic democracy, grassroots solidarity and sustainability (Articles 276 and 283,284).

All in all, the constitution is rich in utopian rhetoric in line with the ideology of buen vivir, yet it leaves many of the specific mechanisms for their realization to secondary legislations, which unfortunately fail to uphold the same revolutionary standards [START_REF] Acosta | El Buen (con) Vivir, una utopiá por (re)construir: Alcances de la Constitucioń de Montecristi[END_REF].

National Planning for Buen Vivir

Since the enactment of the new constitution, the national framework for social and economic policy has been dictated by 4-year national plans called 'Plan Nacional del Buen Vivir' (National Plan for Buen Vivir, PNBV). The two PNBVs elaborated since the election of Correa (2009-2013 and 2013-2017), have three basic pillars. First, they seek to transform the economy from reliance on the primary sector, especially petroleum, towards a modern tertiary sector economy based on services, ecotourism and biotechnology. Second, they aim to reduce poverty and reinforce social equity by redistributing resources towards efficient public services such as education, healthcare and social security. Third, they seek to establish a more participatory form of democracy by enhancing citizen involvement at all levels of governance (SENPLADES, 2009[START_REF] Senplades | Plan Nacional para el Buen Vivir[END_REF].

In order to achieve these goals, the PNBVs seek to increase extractive mining activities in the short term, the idea being to 'use the extraction of raw materials in order to stop the extraction of raw materials' (SENPLADES, 2013 p. 48). This discourse is clearly oxymoronic. In fact the social and environmental consequences of these activities are in direct opposition to a biocentric vision of pachamama and a grassroots social economy. This contradiction shows the extent to which the government has adopted its own interpretation of buen vivir.

Results: Redistribution and State Modernization

To reach the objectives set by the PNBVs, social spending has been substantially increased from 10.7% of the GDP in 2006 to 15% in 2012 (CEPAL, 2014). During the same period, education spending grew from 3.4 to 4.8% of GDP (and is due to increase to 6% by 2017) and health spending grew from 1.2% to 2.1% (Naranjo Bonilla, 2014, p. 25).

These increases were possible due to a substantial growth in government revenue from 14.7% of the GDP in 2006 to 23.1% in 2012. The government was able to obtain this revenue thanks to high international oil prices, and a 2010 law increasing of the state's share of petroleum profits from 13% to 87%, which now represent 48% of its revenue (Becker 2013, p.47). Additionally, the government has tripled income tax revenue thanks to a much-heightened efficiency in its collection. A 2008 foreign debt default also saved the government over US$ 3 billion for social programs [START_REF] Becker | The Stormy Relations between Rafael Correa and Social Movements in Ecuador[END_REF].

The effects of the rapidly increasing social spending can already be witnessed (see Education figures have also shown significant progress and key education figures are now above regional averages (see Table 2). Enhancing the quality and the availability of education has been a priority for the government, especially for the creation of a 'knowledge-based economy' [START_REF] Senplades | Plan Nacional para el Buen Vivir[END_REF]. Schools and universities have greatly increased their quality due to the introduction of standardized tests for both students and educators.

With respect to health, while some progress can be observed, most key figures remain below Latin American averages (see table 2). While the quality and outreach of the public health service saw undeniable improvements, this is probably one of the weakest aspects of the PNBV and a long road remains ahead. Nevertheless, the considerable number of new mining projects, which are being promoted by the government, will inevitably have severe environmental impacts [START_REF] Radcliffe | Development for a postneoliberal era? Sumak Kawsay, living well and the limits to decolonisation in Ecuador[END_REF].

Finally, in economic terms, Ecuador accomplished faster rates of GDP growth than the rest of the region while diminishing foreign debt (see table 4).

The advances in health and education have also lead to a significant improvement in the HDI (Human Development Index), which grew two times faster in Ecuador than in the rest of the region. These results, obtained despite the economic recession of 2008-9, have led some to speak of an 'Ecuadorian miracle'.

Scholars such as Nayyar, have argued that the Latin American left faced the crisis with greater resilience precisely thanks to such strengthened social protection systems and redistributive policies as are discussed above (2011).

Nevertheless, the picture is far from ideal. While the Gini coefficient [START_REF] Helliwell | World Happiness Report[END_REF]. The Happy Planet Index of the New Economic Foundation shows comparable results with Ecuador rising from 58 th to 23 rd in the world [START_REF] Abdallah | The Happy Planet Index: 2012 Report: A global index of sustainable well-being[END_REF]. These are the sorts of targets that truly measure buen vivir. Their improvement shows that the country might be heading in the right direction. As Stiglitz and Fitousi have pointed out, many other new indicators like these are desperately needed in order to measure progress in more a holistic and sustainable manner (2013). The Ecuadorian government has acknowledged this necessity and is in the process of developing a set of 'buen vivir indicators' [START_REF] Acosta | El Buen (con) Vivir, una utopiá por (re)construir: Alcances de la Constitucioń de Montecristi[END_REF].

Challenges for Ecuador and the Buen Vivir:

Overall, the government has made its own interpretation of buen vivir. In fact, there has clearly been a greater emphasis on social and economic rather than environmental and spiritual goals. The government's implementation of buen vivir, has thus received much criticism, from indigenous groups, social movements, journalists and academics alike [START_REF] Walsh | Development as Buen Vivir: Institutional arrangements and (de)colonial entanglements[END_REF][START_REF] Acosta | El Buen (con) Vivir, una utopiá por (re)construir: Alcances de la Constitucioń de Montecristi[END_REF][START_REF] Radcliffe | Development for a postneoliberal era? Sumak Kawsay, living well and the limits to decolonisation in Ecuador[END_REF][START_REF] Becker | The Stormy Relations between Rafael Correa and Social Movements in Ecuador[END_REF]. This criticism has revolved around three major concerns.

First of all they point out how the redistributive process was limited to the revenues from natural resources (mainly oil) rather than a transformative redistribution of the means of production [START_REF] Radcliffe | Development for a postneoliberal era? Sumak Kawsay, living well and the limits to decolonisation in Ecuador[END_REF]. It can thus be argued that the country has merely moved to post-neoliberalism but not to postcapitalism. Indeed, inequalities in the control of the means of production, have impeded the realization of the communal aspirations of buen vivir. Cooperatives, associations and small enterprises clearly lag behind large industries and corporate farms. The concentration of sales is such that only 1% of companies control 90% of all sale revenues (Fernańdez, Pardo&Salamanca, 2014, p. 111).

The 'social economy' envisioned by buen vivir is thus still a project in design.

Secondly, criticisms have targeted the government's ambition to expand the extraction of natural resources. While Correa argues this is only a short term strategy to obtain the much needed capital for social programs, social movements believe this is a very risky path that clearly contradicts the biocentric ideas of the buen vivir [START_REF] Walsh | Development as Buen Vivir: Institutional arrangements and (de)colonial entanglements[END_REF] Ecuador to be a producer of raw material at the periphery of global capitalism [START_REF] Becker | The Stormy Relations between Rafael Correa and Social Movements in Ecuador[END_REF]. The continued reliance on the primary sector is thus not only an impediment to economic development in a traditional sense, but also to the realization of the alternative economy.

Opposition to mining extraction has caused countless social clashes against the government that has, on every occasion, imposed its will against that of local communities [START_REF] Polga-Hecimovich | Ecuador: Estabilidad Institucional Y La Consolidación De Poder De Rafael Correa[END_REF]. This autocratic confrontation of dissent is precisely the third major criticism against Correa's government. Protests have been rising since Correa took office, leading to the government's criminalization of some 200 citizens, facing charges of terrorism and sabotage, for defending their right to buen vivir [START_REF] Becker | The Stormy Relations between Rafael Correa and Social Movements in Ecuador[END_REF]. The state's autocratic stance can also be observed through its heavy control of the media. The government has prosecuted various journalists who have been accused of 'defamation' and has greatly expanded the number of government owned media outlets [START_REF] Becker | The Stormy Relations between Rafael Correa and Social Movements in Ecuador[END_REF]. Moreover, Correa was able to amass so much power that the judicial and the legislative branches are now widely under his control. This has lead Polga-Hecimovich to describe Ecuador as a 'delegative democracy, with an absence of equilibrium between state powers and no horizontal accountability ' (2013, p. 153).

All in all, Ecuador seems to treat its citizens as passive social clients rather than active participants in a radical democracy. While buen vivir promotes active citizen involvement, realities are typically paternalist, with the state providing social services in exchange for citizens' approval in elections. The state did extend and improve the provision of social services to those previously excluded, yet in no way does this represent the radical institutional transformation envisioned by buen vivir (Acosta 2010, p. 27). In synthesis, as Acosta puts it 'never before have the powerful economic groups been better off, and never before have the poorest sectors been less worst-off' (interview in Fernańdez, Pardo & Salamanca, 2014, p. 112) Compromises, Contradictions and Inconsistencies.

The policies of Correa and the 'socialism of buen vivir' seem to be riddled with contradictions and inconsistencies. The government had to make difficult decisions and compromise between different ideologies and socio-economic forces. Many criticize the government for not taking more transformative redistributive measures. However, it is important to note that the president did not want to antagonize the Ecuadorian economic elite, which already had little regard for his ideologies. In those conditions, facing massive socio-economic repercussions (even a possible coup), it can be argued that Correa took a more precautionary road, redistributing only as much as was politically feasible.

The short-term use of mineral resources is another point where the government might have had to compromise. Seeing that a more widespread economic redistribution might cause unviable social upheavals, other sources of financing for social policies had to be found. Considering that Ecuador has one of the most 'underutilized' mining sectors in the region, this was seen as an easy short-term solution.

Finally Correa's autocratic style of governance could also be seen as another compromise. In fact, Ecuador used to be characterized as 'un-governable' due to high levels of political instability. In these circumstances, Correa's presidency represents a unique moment of social stability and political continuity. Indeed, his rule has been able to secure a much-needed level of government autonomy, efficiency and consistency. Nonetheless, it is undeniable that, as Becker puts it, the president was 'too willing to sacrifice empowerment and broader levels of popular participation to achieve higher levels of economic performance, particularly in the extractive sectors' (2013p. 48).

In the midst of these compromises and inconsistencies, one hopes the state will not lose sight of the real objective. The realization of buen vivir will inevitably require a complete socio-economic transformation in the long run, leading to a form of life based on an entirely different paradigm. So far, the state has unfortunately replicated the same capitalist, materialist and extractive ontologies. This leads to the question of whether the buen vivir can actually be realized in the context of a capitalist democracy? Or does it require such a deep transformation that only a revolutionary break with the past can lead towards it?

No matter what road is taken, the buen vivir remains a utopia in constant construction and reinvention. For its realization, civil society and the state will have to collaborate more closely and profoundly. Most importantly, the state will have to accept that it does not hold a monopoly over the construct and will have to open the door for a more democratic construction of this ideal. Otherwise, the demands for its realization could be brought to the streets.

Conclusion: The Buen Vivir in Transnational Perspective

Beyond the implications and successes of the buen vivir at the national level, this same ontological framework could provide an innovative perspective for transnational issues. The constitutional principles inspired by buen vivir could also lead to the solidification of 'third generation rights'. Indeed, the rights to economic, energy and food sovereignty, to a healthy environment and to water, represent milestones from which to base international policy making. The rights of nature are an even further step, which merits the greatest international attention. In the face of the present ecological challenges, guaranteeing rights to nature at the transnational level could ensure the basis for binding efforts to protect the everdwindling natural world.

Finally, the move towards a 'social economy' based on green technologies and economic democracy is a positive aspiration for all humankind. The social inequity and the technological divide that characterise the globalised world further emphasise the importance of a transnational effort towards this objective.

As new powers emerge and new alliances are formed (ALBA, UNASUR, CELAC and the New Development Bank), south-south cooperation and northsouth partnerships can lead the way towards another type of globalisation that, in the face of the challenges of the anthropocene, might be capable of upholding the vision of sustainability proposed by buen vivir.

  Buen vivir's collective philosophy of progress and the harmony envisioned between and within humankind and nature pose the foundations for a truly global consciousness. If humanity has a chance of succeeding against the challenges brought by the anthropocene, it must step beyond the anthropocentric and ethnocentric constructs, which have dominated global policymaking. Moreover, the 'radical pluralism' envisioned by buen vivir poses the foundation for a form of global partnership that seeks to operate beyond entrenched ideological and narrow national interests and towards collective 'humane' aspirations.

  table 1). Poverty and employment figures show some encouraging improvements and the PNBV plans to continue efforts in this direction (see table 1). Moreover, the state substantially increased the minimum wage from US$170 per month in 2007 to US$394 in 2013 (Ambrosi De La Cadena, 2014). It now covers 93.8% of the basic basket of goods, which 45.5% of households are able to afford (see table 1). These advances in poverty reduction can also be attributed to the improvement of the conditional cash transfer program to mothers, seniors and persons with disabilities, which increased from US$15 per month in 2006 to US$50 in 2013. It now benefits over 1.8 million people, up from 1.2 million in 2006 (Naranjo Bonilla, 2014,p. 42).

	Table 1: Selected Socio-Economic Indicators
	Poverty	2006	2012	2017 objective
	Ecuador	43%	32.2%	20%
	LA average	34%	28.2%	-
	Extreme Poverty	2006	2012	2017 objective

Table 3 :

 3 Selected Environmental Indicators government failed to reach it's objective of reduction to 0.42 by 2013 and has now set a more modest goal of reduction to 0.44 by 2017(SENPLADES, 2013, p.130). Yet, it is important to note that the Gini is hardly an accurate measure of inequality in a country where one third of the economically active population does not have a stable, measureable income.Ecuador hence continues to be a profoundly unequal society, a world of 'haves and have-nots' that the Gini cannot possibly convey. It is also clear that standard socio-economic indicators alone do not respond to the alternative vision proposed by buen vivir. Some alternative indicators are now starting to emerge. For instance the 2013 World Happiness Report, of the UN's Sustainable Development Solutions Network ranks Ecuador in 49 th place with a score of 5.865 in the 2010-12 period and it is the country with the 4 th fastest growth in the world compared with 2005-7 results

	Proportion of mainland territory under environmental conservation	2008	2012	2017 objective
	or management	25.9%	30.5%	35.9%
	Continental coastal territory under environmental conservation	2008	2012	2017 objective
	or management (hectares)	357.000	440.800	817.000
	Proportion of renewable energy supply (Percentages)	2006	2012	2017
	Ecuador	46.1	43.1	60
	Source: CEPAL, 2014 and SENPLADES 2013, pp. 242-330

Table 5 :

 5 Selected Economic Indicators

	Gini Coefficient	2005	2012	2017
	Ecuador	0.531	0.468	0.44
	HDI	2007	2012	2030
	Ecuador	0.688 (99 th )	0.724 (89 th )	0.82
	LAC average	0.722	0.741	-
	Average GDP growth at constant prices	Average growth from 2006 to 2013

  . Additionally, the course of development brought by the

	Ecuador exploitation of raw materials is associated with a 'resource curse' that condemns 4.35%
	LAC Average	3.65%
	Foreign Debt as percentage of	2005-10	2012
	GDP	36.54	18.18
	Source: CEPAL, 2014 and SENPLADES, 2013, p.130