Environmental Impacts of Trade Liberalization in the Bio-diesel Sector of the Lao PDR

This report examines the environmental and social implications of trade liberalization within the bio-diesel sector of Lao PDR, highlighting the tension between energy security goals and potential ecological degradation.

• Lao PDR seeks to reduce its heavy reliance on imported oil for industry and transport by developing locally-produced bio-fuel sources, which is viewed as a way to create new economic opportunities and improve energy security in the context of rising crude oil prices and high demand from China.
• The government's rationale for increasing biofuel production includes potential positive impacts such as the conservation of fossil fuels, greenhouse gas abatement to mitigate climate change, and the maintenance of agricultural employment.
• Significant environmental and social risks are associated with bio-diesel production, including water pollution from pesticides and fertilizers, the conversion of natural forests to mono-crop plantations, and the expansion of cultivation into areas containing endangered species and rich biodiversity.
• Lao PDR currently lacks a cohesive national policy on biofuels, necessitating better coordination between provincial authorities and government ministries. The report suggests integrating environmental considerations into policy through strategic environmental assessments and providing incentives for private sector investment that aligns with these assessments.

APA

Sengmany,, P. (2008). Environmental Impacts of Trade Liberalization in the Bio-diesel Sector of the Lao PDR. International Institute for Sustainable Development. https://www.iisd.org/publications/report/environmental-impacts-trade-liberalization-bio-diesel-sector-lao-pdr

Chicago

Sengmany,, Phaychith. Environmental Impacts of Trade Liberalization in the Bio-diesel Sector of the Lao PDR. International Institute for Sustainable Development, 2008. https://www.iisd.org/publications/report/environmental-impacts-trade-liberalization-bio-diesel-sector-lao-pdr.

Wikipedia

{{cite report |last1=Sengmany, |first1=Phaychith |title=Environmental Impacts of Trade Liberalization in the Bio-diesel Sector of the Lao PDR |publisher=International Institute for Sustainable Development |date=23 January 2008 |url=https://www.iisd.org/publications/report/environmental-impacts-trade-liberalization-bio-diesel-sector-lao-pdr |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sengmany2008environmental, author = {Sengmany,, Phaychith}, title = {{Environmental Impacts of Trade Liberalization in the Bio-diesel Sector of the Lao PDR}}, institution = {International Institute for Sustainable Development}, year = {2008}, month = jan, url = {https://www.iisd.org/publications/report/environmental-impacts-trade-liberalization-bio-diesel-sector-lao-pdr}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }