Abstract
Defining successful community bioenergy development is often difficult due to diverging interpretation on what the most important aspect on bioenergy development. Sustainable bioenergy is one that equitable, habitable, and feasible based on economy, social, and environment aspect of bioenergy production and these three aspects ideally should be in balance to achieve sustainability. This study is to develop a model using Engel Coefficient (ECF) to explain links among communities' incentive, increasing community's willingness to participate; and communitoes' welfare improvement, and apply it for the Community based Bioenergy Program in Bangkalan, Indonesia to survey its sustainability.
In Bangkalan case, sustainability of community bioenergy project is affected by incentive ratio. Decreasing incentive ratio did not significantly decrease overall participation level due to steady income from selling biomass material. It did affect new participation from poor community and led to lower poor household decrease rate. However, decreasing incentive ratio would increase project's Benefit/Cost ratio.