The Socioeconomic Bases of Biofuels Production Business at the Organizational Level

Abstract

The article is aimed at defining the priorities for the development of the biofuel market in Ukraine to ensure the energy security of the country and satisfy the country’s energy needs. Prospects for the bioenergy sector of the economy in the world will be determined primarily by the optimization of national policies in the matrix of multifarious criteria. The place of the Ukrainian model is highly likely to be determined, on the one hand, by the development of the national market, on the other hand, by the production of raw materials for world biofuel markets. At the same time, this market and production in Ukraine remains only a potentially promising model that requires a scientific substantiation for its efficiency. As a result of the study, it is specified that the bioenergy industry has serious limitations and problems of economic nature that require scientific substantiation. After analyzing the limitations and prospects of the industry development in Ukraine at the level of agricultural enterprises that could deploy biofuel production, it should be emphasized that: 1) there is currently no biofuel market in Ukraine: there is no significant production, hence the proposal still remains unformed; there are no agents (firms, enterprises) of the market that would form the established demand; the necessary norms, institutions, mechanisms of the representative market have not been developed; 2) there is no successful experience of such a business both in Ukraine in general and in agricultural enterprises in particular. From here, as well as taking into account the above-mentioned aspects, the attractiveness of this business, including investment, needs to be justified. Enterprises of this group will face funding problems, as well as technical and technological support problems. Therefore, special careful economic substantiation of the market efficiency model and business processes is required; 3) because of these reasons, the task of scientific substantiation of the model of efficient management of this business becomes highly topical.