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Combustion of fossil fuels in the transport sector represents the second largest source of greenhouse gas emissions. For this reason, governments are fostering diversification of energy sources by creating a set of governmental environmental policies and initiatives. In this context, biofuels are expected to represent a substantial part of source diversification, but it is necessary to assess the sustainability of their market to explore its effect on economical, technological, social, political and environmental dimensions. This research presents a dynamic simulation modelling of the Colombian biodiesel market and analyzes the policy support instruments for creating and managing it. A system dynamics based model is proposed to enable decision-makers to understand the influences between the different variables that describe the system and the impact of the biodiesel government policy in Colombia. The primary focus of this paper is to establish the characteristics of each sustainability dimension for the case of study and apply the system dynamics methodology with different types of validation. Finally, the Colombian market status and a sensitivity analysis are developed. The results show that in order to support the development of this sector, it is necessary to diversify the raw materials for the production of biodiesel in the medium term, which means raw materials without competence for the primary rainforest or competition with food productive lands. [ABSTRACT FROM AUTHOR]

Colombia's electricity mix is dominated by hydropower, which constitutes over 65 percent of the installed capacity. The country has important potential for introducing solar photovoltaic sources into its electricity generation mix given its high average annual insolation. However, there is a lack of incentives and support schemes for alternative renewable energy technologies. This paper analyzes the diffusion of a photovoltaic system in Colombia with a focus on Medellín, Colombia's second largest city. A diffusion model is constructed, based on the classic Bass diffusion theory, where the adoption rate is a function of awareness-raising campaigning and social interaction. The model incorporates both subsidy and feed-in-tariff policies. Policy implementation scenarios and the effects of policy mixes are analyzed. Results show that a 50 percent subsidy for investment, together with a USD 0.30/kWh feed-in-tariff rate, jointly provide the highest marginal increase in diffusion rate. However, given the cheapness of the country's current hydroelectric resources, photovoltaic-system diffusion might remain a challenge for both the government and private sectors for the foreseeable future. [ABSTRACT FROM AUTHOR]