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Biodiesel: A new Oildorado?

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  • Frondel, Manuel
  • Peters, Jorg

Abstract

Guaranteeing tax reductions and exemptions, the European governments intend to increase the share of biofuels in total EU fuel consumption to 5.75% by 2010. The financial support of this EU objective is frequently justified by expected positive environmental impacts, most notably the mitigation of climate change, and by favorable employment effects in the agricultural sector. This paper investigates the environmental and economic implications of the support of rapeseed-based biodiesel as a substitute for fossil diesel.Based on a survey of recent empirical studies, we find that the energy and greenhouse gas balances of this environmental strategy are clearly positive.Yet, its overall environmental balance is currently far from being unequivocally positive. Most importantly, biodiesel is not a cost-efficient emission abatement strategy.Thus, for the abatement of greenhouse gases,we recommend more efficient alternatives based on both renewable and conventional technologies.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 35 (2007)
Issue (Month): 3 (March)
Pages: 1675-1684

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Handle: RePEc:eee:enepol:v:35:y:2007:i:3:p:1675-1684

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References

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  1. Gernot Klepper & Sonja Peterson, 2004. "The EU Emissions Trading Scheme: Allowance Prices, Trade Flows, Competitiveness Effects," Kiel Working Papers 1195, Kiel Institute for the World Economy.
  2. Torre Ugarte, Daniel de la & Walsh, Marie E. & Shapouri, Hosein & Slinsky, Stephen P., 2003. "The Economic Impacts of Bioenergy Crop Production on U.S. Crop Production," Agricultural Economics Reports 33997, United States Department of Agriculture, Economic Research Service.
  3. Faaij, Andre P.C., 2006. "Bio-energy in Europe: changing technology choices," Energy Policy, Elsevier, vol. 34(3), pages 322-342, February.
  4. Henke, J.M. & Klepper, G. & Schmitz, N., 2005. "Tax exemption for biofuels in Germany: Is bio-ethanol really an option for climate policy?," Energy, Elsevier, vol. 30(14), pages 2617-2635.
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Cited by:
  1. Roland Döhrn & Philipp an de Meulen & Tobias Kitlinski & Torsten Schmidt & Simeon Vosen, 2011. "Die wirtschaftliche Entwicklung im Ausland zur Jahreswende 2010/2011 - Aufschwung setzt sich fort – Divergenzen bleiben groß," RWI Konjunkturbericht, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 34, 03.
  2. Schmitt, Sophie & Schulze, Kai, 2011. "Choosing environmental policy instruments: An assessment of the 'environmental dimension' of EU energy policy," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 15, November.
  3. Raimund Bleischwitz & Nikolas Bader & Anne Nygaard Madsen (Tanner) & Per Dannemand Andersen, 2008. "EU Policies and Cluster Development of Hydrogen Communities," Bruges European Economic Research Papers 14, European Economic Studies Department, College of Europe.
  4. Michiel Keyzer & Max Merbis & Roelf Voortman, 2008. "The Biofuel Controversy," De Economist, Springer, vol. 156(4), pages 507-527, December.
  5. Frondel, Manuel & Kambeck, Rainer & Schmidt, Christoph M., 2007. "Hard coal subsidies: A never-ending story?," Energy Policy, Elsevier, vol. 35(7), pages 3807-3814, July.
  6. Ng, Jo-Han & Ng, Hoon Kiat & Gan, Suyin, 2012. "Characterisation of engine-out responses from a light-duty diesel engine fuelled with palm methyl ester (PME)," Applied Energy, Elsevier, vol. 90(1), pages 58-67.
  7. Perdiguero, Jordi & Jiménez, Juan Luis, 2011. "Sell or not sell biodiesel: Local competition and government measures," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(3), pages 1525-1532, April.
  8. Manuel Frondel & Nolan Ritter & Christoph M. Schmidt, 2008. "Germany's Solar Cell Promotion: Dark Clouds on the Horizon," Ruhr Economic Papers 0040, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  9. Yan, Xiaoyu & Crookes, Roy J., 2009. "Life cycle analysis of energy use and greenhouse gas emissions for road transportation fuels in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2505-2514, December.
  10. Leucci, A. C. & Ghinoi, S. & Sgargi, D. & Wesz, V. J., Jr., 2013. "Variation and links among food and energy international prices. An analysis through VAR models from 2000 to 2012," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149923, Italian Association of Agricultural and Applied Economics (AIEAA).
  11. Annalisa Zezza, 2007. "The economic and environmental sustainability of biofuel production," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, November.
  12. Jörg Peters & Sascha Thielmann, 2008. "Promoting Biofuels: Implications for Developing Countries," Ruhr Economic Papers 0038, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  13. David Pimentel & Alison Marklein & Megan A. Toth & Marissa Karpoff & Gillian S. Paul & Robert McCormack & Joanna Kyriazis & Tim Krueger, 2008. "Biofuel Impacts on World Food Supply: Use of Fossil Fuel, Land and Water Resources," Energies, MDPI, Open Access Journal, vol. 1(2), pages 41-78, September.
  14. da Silva César, Aldara & Otávio Batalha, Mário, 2010. "Biodiesel production from castor oil in Brazil: A difficult reality," Energy Policy, Elsevier, vol. 38(8), pages 4031-4039, August.
  15. Malça, João & Freire, Fausto, 2011. "Life-cycle studies of biodiesel in Europe: A review addressing the variability of results and modeling issues," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 338-351, January.
  16. Charles, Michael B. & Ryan, Rachel & Oloruntoba, Richard & Heidt, Tania von der & Ryan, Neal, 2009. "The EU-Africa Energy Partnership: Towards a mutually beneficial renewable transport energy alliance?," Energy Policy, Elsevier, vol. 37(12), pages 5546-5556, December.
  17. Akinci, Berk & Kassebaum, Paul G. & Fitch, Jonathan V. & Thompson, Robert W., 2008. "The role of bio-fuels in satisfying US transportation fuel demands," Energy Policy, Elsevier, vol. 36(9), pages 3485-3491, September.

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