We felt that our resultant policy would be easily introduced and widely accepted as the methods and economic instruments we proposed are tried and tested. However, we feel that introducing the policy would not have an impact sufficient to counteract the various costs associated with the switch to biodiesel and bioethanol.

Another factor is the monetary cost of a change in policy, which obviously plays an important role. While we did expect there to be a price differential between conventional fuel and biofuels (conventional fuels being the cheaper), we did not expect that the government would incur such a large cost. The lost duty to the UK government would be £875million over 3 years from lowering the duty on biodiesel and bioethanol. However, an advantage of the policy we are proposing places the cost of plant construction firmly in the private sector and encourages it through tax incentives.