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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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  • Iliopoulos, Constantine & Rozakis, Stelios, 2010. "Environmental cost-effectiveness of bio diesel production in Greece: Current policies and alternative scenarios," Energy Policy, Elsevier, vol. 38(2), pages 1067-1078, February.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:2:p:1067-1078
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    2. Escobar, Neus & Manrique-de-Lara-Peñate, Casiano & Sanjuán, Neus & Clemente, Gabriela & Rozakis, Stelios, 2017. "An agro-industrial model for the optimization of biodiesel production in Spain to meet the European GHG reduction targets," Energy, Elsevier, vol. 120(C), pages 619-631.
    3. 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.
    4. 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.
    5. Bartoli, Andrea & Hamelin, Lorie & Rozakis, Stelios & Borzęcka, Magdalena & Brandão, Miguel, 2019. "Coupling economic and GHG emission accounting models to evaluate the sustainability of biogas policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 106(C), pages 133-148.
    6. Zhao, Xingang & Zeng, Yiping & Zhao, Di, 2015. "Distributed solar photovoltaics in China: Policies and economic performance," Energy, Elsevier, vol. 88(C), pages 572-583.
    7. Vlysidis, Anestis & Binns, Michael & Webb, Colin & Theodoropoulos, Constantinos, 2011. "A techno-economic analysis of biodiesel biorefineries: Assessment of integrated designs for the co-production of fuels and chemicals," Energy, Elsevier, vol. 36(8), pages 4671-4683.
    8. Živković, Snežana B. & Veljković, Milan V. & Banković-Ilić, Ivana B. & Krstić, Ivan M. & Konstantinović, Sandra S. & Ilić, Slavica B. & Avramović, Jelena M. & Stamenković, Olivera S. & Veljković, Vlad, 2017. "Technological, technical, economic, environmental, social, human health risk, toxicological and policy considerations of biodiesel production and use," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 222-247.

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    Bio diesel Quota policy Greece;

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