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Economic effects of the production of bioethanol for use as fuel

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  • Manfred Schöpe

Abstract

The use of ethanol, made of agricultural material, is practised in many countries as a major substitute for fossil fuels. An increasing trend for ethanol is observed worldwide, and economic effects arise from the new industry. The Ifo Institute, using input/output tables, calculated these effects in a study for the LAB Landwirtschatliche Biokraftstoffe e.V., Berlin. Accordingly, the domestic bioethanol production expected for 2010 represents a production value of ca. €1.1 billion or 1.9 million tons. This in comparison to production plans for 2007 is a three-fold increase. The domestic value-added directly and indirectly from ethanol production for use in the fuel sector, as determined by input-output calculations made by the Ifo Institute, amounts to ca. €2.1 billion. This value-added is based on an aggregate economic output of €3.7 billion.

Suggested Citation

  • Manfred Schöpe, 2006. "Economic effects of the production of bioethanol for use as fuel," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(21), pages 27-36, November.
    • Handle: RePEc:ces:ifosdt:v:59:y:2006:i:21:p:27-36
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    File URL: https://www.ifo.de/DocDL/ifosd_2006_21_2.pdf
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    References listed on IDEAS

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    1. Manfred Schöpe & Günter Britschkat, 2002. "Macroeconomic assessment of rapeseed planting for biodiesel production in Germany," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(06), pages 14-21, March.
    2. Manfred Schöpe, 2006. "Economic effects of the production of biodiesel as automotive fuel," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(17), pages 21-30, September.
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    Cited by:

    1. Breuer, Thomas & Holm-Muller, Karin, 2007. "Abschätzung der Wertschöpfungspotenziale im ländlichen Raum durch Biokraftstoffe am Beispiel Nordrhein-Westfalens," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 56(5/6).
    2. Jürgens, Ulrich & Meißner, Heinz-Rudolf, 2008. "Ausbruch aus der Sandwich-Position? Risiken und Chancen der neuen ost-/westeuropäischen Arbeitsteilung für die ostdeutsche Automobilindustrie," Discussion Papers, Research Unit: Knowledge, Production Systems and Work SP III 2008-301, WZB Berlin Social Science Center.
    3. Breuer, Thomas & Holm-Muller, Karin, 2007. "Abschätzung der Wertschöpfungspotenziale im ländlichen Raum durch Biokraftstoffe am Beispiel Nordrhein-Westfalens," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 56(05-06), pages 1-8.

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    1. Breuer, Thomas & Holm-Muller, Karin, 2007. "Abschätzung der Wertschöpfungspotenziale im ländlichen Raum durch Biokraftstoffe am Beispiel Nordrhein-Westfalens," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 56(5/6).
    2. Breuer, Thomas & Holm-Muller, Karin, 2007. "Abschätzung der Wertschöpfungspotenziale im ländlichen Raum durch Biokraftstoffe am Beispiel Nordrhein-Westfalens," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 56(05-06), pages 1-8.
    3. Jürgens, Ulrich & Meißner, Heinz-Rudolf, 2008. "Ausbruch aus der Sandwich-Position? Risiken und Chancen der neuen ost-/westeuropäischen Arbeitsteilung für die ostdeutsche Automobilindustrie," Discussion Papers, Research Unit: Knowledge, Production Systems and Work SP III 2008-301, WZB Berlin Social Science Center.
    4. Manfred Schöpe, 2006. "Economic effects of the production of biodiesel as automotive fuel," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(17), pages 21-30, September.

    More about this item

    JEL classification:

    • Q29 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Other

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