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Biodiesel: A New Oildorado?

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  • Manuel Frondel

    ()

  • Jörg Peters

    ()

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

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung in its series RWI Discussion Papers with number 0036.

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Length: 24 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:rwi:dpaper:0036

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Keywords: Renewable Energy; Environmental Policy; Greenhouse Gas Emissions;

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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," Working Papers 2004.49, Fondazione Eni Enrico Mattei.
  2. Faaij, Andre P.C., 2006. "Bio-energy in Europe: changing technology choices," Energy Policy, Elsevier, vol. 34(3), pages 322-342, February.
  3. 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.
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Citations

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Cited by:
  1. 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.
  2. Annalisa Zezza, 2007. "The economic and environmental sustainability of biofuel production," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, November.
  3. 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.
  4. Manuel Frondel & Rainer Kambeck & Christoph M. Schmidt, 2006. "Hard Coal Subsidies: A Never-Ending Story?," RWI Discussion Papers 0053, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
  5. 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.
  6. 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.
  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. 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).
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. Bleischwitz, Raimund & Bader, Nikolas & Dannemand, Per & Nygaard, Anne, 2008. "EU Policies and Cluster Development of Hydrogen Communities," MPRA Paper 14501, University Library of Munich, Germany.
  14. 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.
  15. 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.
  16. Michiel Keyzer & Max Merbis & Roelf Voortman, 2008. "The Biofuel Controversy," De Economist, Springer, vol. 156(4), pages 507-527, December.
  17. 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.

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