Government support
The development of a new industry is costly and time consuming. Before this industry reaches a certain economic scale and competitive power, some forms of supports from the government are necessary. Subsidies and taxes deductions and/or exemptions could be useful methods to assist the industry. However, a long-term planning of a financial support program must be scheduled prior to the launch of bioenergy development. Another essential part that involves government support is farmers. Farmers who participate with the bioenergy program also need to be supported to increase their willingness to convert land. The current subsidy is designed only for farmers who convert idle land with energy crops. However, the results show that not all idle land is converted, implying that the land resource is not bounded. This may be the cause of the low marginal rate of the return of barren soil. Therefore, another type of subsidy may be designed that focuses not on bioenergy production but on the potential of carbon sequestration. A subsidy for afforestation could be one example. However, the accurate measure of GHG emission sequestration from afforestation must be monitored properly.