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Macroeconomic effects of the promotion of biodiesel

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  • Manfred Schöpe

Abstract

The German energy tax law of 2006 introduced a tax on pure biodiesel, which will be increased from year to year. With a current taxation rate of 18.6 cent/litre, cost-covering sales are no longer ensured so that the markets have largely collapsed and existing production facilities are no longer operating to full capacity. The current political discussion is focussing on the problematic nature of an economically adequate taxation. This article examines the extent to which the economic contribution made by the value-added chain "biodiesel" contributes to offsetting the reduced tax revenues.

Suggested Citation

  • Manfred Schöpe, 2010. "Macroeconomic effects of the promotion of biodiesel," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(04), pages 40-48, February.
  • Handle: RePEc:ces:ifosdt:v:63:y:2010:i:04:p:40-48
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    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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