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Environmental cost-effectiveness of bio diesel production in Greece: Current policies and alternative scenarios

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  • Iliopoulos, Constantine
  • Rozakis, Stelios

Abstract

Following European Directive 2003/30/EC, the Greek Government adapted legislation that introduces and regulates the bio diesel market. The implemented quota scheme allocates the country's annual, predetermined, tax exempt production of bio diesel to industries based on their ability to meet several criteria. A number of bio diesel supply chain stakeholders have criticized this policy for being efficiency-robbing and vague. This paper uses 2007 data from energy crop farms and three bio diesel-producing companies in order to assess these criticisms. We study the economic and environmental aspects of the currently adopted policy and compare them to three alternative scenarios. We conclude that such criticisms have a merit and that policy makers need to reconsider their alternative options regarding the promotion of bio diesel in transport. Permission of sales directly to local consumers and promotion of forward integration by farmers are efficiency enhancing and environment-friendly means of promoting the use of bio diesel in transport.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 38 (2010)
Issue (Month): 2 (February)
Pages: 1067-1078

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Handle: RePEc:eee:enepol:v:38:y:2010:i:2:p:1067-1078

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Keywords: Bio diesel Quota policy Greece;

References

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  1. Rosa, Franco, 2008. "The LP Model to Optimize the Biofuel Supply Chain," 110th Seminar, February 18-22, 2008, Innsbruck-Igls, Austria 49889, European Association of Agricultural Economists.
  2. Russi, Daniela, 2008. "An integrated assessment of a large-scale biodiesel production in Italy: Killing several birds with one stone?," Energy Policy, Elsevier, vol. 36(3), pages 1169-1180, March.
  3. Demirbas, Ayhan, 2007. "Importance of biodiesel as transportation fuel," Energy Policy, Elsevier, vol. 35(9), pages 4661-4670, September.
  4. Rozakis, S. & Sourie, J. -C., 2005. "Micro-economic modelling of biofuel system in France to determine tax exemption policy under uncertainty," Energy Policy, Elsevier, vol. 33(2), pages 171-182, January.
  5. Gardner Bruce & Tyner Wallace, 2007. "Explorations in Biofuels Economics, Policy, and History: Introduction to the Special Issue," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-8, December.
  6. Carolan Joseph E. & Joshi Satish V. & Dale Bruce E., 2007. "Technical and Financial Feasibility Analysis of Distributed Bioprocessing Using Regional Biomass Pre-Processing Centers," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-29, December.
  7. Bernard, F. & Prieur, A., 2007. "Biofuel market and carbon modeling to analyse French biofuel policy," Energy Policy, Elsevier, vol. 35(12), pages 5991-6002, December.
  8. Rozakis, Stelios & Sourie, Jean-Claude & Vanderpooten, Daniel, 2001. "Integrated micro-economic modelling and multi-criteria methodology to support public decision-making: the case of liquid bio-fuels in France," Economics Papers from University Paris Dauphine 123456789/2840, Paris Dauphine University.
  9. Leduc, Sylvain & Natarajan, Karthikeyan & Dotzauer, Erik & McCallum, Ian & Obersteiner, Michael, 2009. "Optimizing biodiesel production in India," Applied Energy, Elsevier, vol. 86(Supplemen), pages S125-S131, November.
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Cited by:
  1. Md. I. Haque & Stelios Rozakis & A. Natsis & M. Borzecka-Walker & K. Mizak, 2011. "Cost effectiveness of bio-ethanol to reduce carbon dioxide emissions in Greece," Working Papers 2011-3, Agricultural University of Athens, Department Of Agricultural Economics.
  2. Zafeiriou, Eleni & Arabatzis, Garyfallos & Koutroumanidis, Theodoros, 2011. "The fuelwood market in Greece: An empirical approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 3008-3018, August.

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