IDEAS home Printed from https://ideas.repec.org/a/ces/ifosdt/v59y2006i17p21-30.html
   My bibliography  Save this article

Economic effects of the production of biodiesel as automotive fuel

Author

Listed:
  • Manfred Schöpe

Abstract

In no other country of the EU has the production and consumption of fatty acid methyl ester grown as strongly as in Germany. Policy decisions are the major factors behind the success of biodiesel, mainly produced from rape seed, with energy- and environmental-policy aspects gaining in importance alongside agricultural-policy considerations. In 2003 the EU issued a Directive with the goal of achieving a 5.75 percent share for biofuels in overall fuel consumption by 2010. In Germany, the tax benefits for bio automotive fuel and bio heating fuel have played an important role. The Ifo Institute, using an input/output analysis, examined the macroeconomic effects to be expected from the increasing use of biodiesel, also under the conditions of a gradual reduction of tax benefits. Scenarios for 2007 and 2009 were developed as to how the value added chain of biodiesel from rape-seed production up to the diesel pump has a direct effect on production, employment and the government budget. The result of the calculations is that the biodiesel value-added chain is responsible for the creation or preservation (agriculture) of 22,400 jobs already in the base year 2005. The (direct and indirect) job-creation effect should be more than 55,000 jobs by 2009. As a result of the new energy tax law, the burden to the public budget will lose significance in future. For 2009 the Ifo Institute has calculated a positive (net) effect of €1.74 billion.

Suggested Citation

  • Manfred Schöpe, 2006. "Economic effects of the production of biodiesel as automotive fuel," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(17), pages 21-30, September.
    • Handle: RePEc:ces:ifosdt:v:59:y:2006:i:17:p:21-30
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/ifosd_2006_17_2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Manfred Schöpe & Günter Britschkat, 2002. "Macroeconomic assessment of rapeseed planting for biodiesel production in Germany," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(06), pages 14-21, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Breuer, Thomas & Holm-Muller, Karin, 2007. "Abschätzung der Wertschöpfungspotenziale im ländlichen Raum durch Biokraftstoffe am Beispiel Nordrhein-Westfalens," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 56(5/6).
    2. Manfred Schöpe, 2006. "Economic effects of the production of bioethanol for use as fuel," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(21), pages 27-36, November.
    3. Jürgens, Ulrich & Meißner, Heinz-Rudolf, 2008. "Ausbruch aus der Sandwich-Position? Risiken und Chancen der neuen ost-/westeuropäischen Arbeitsteilung für die ostdeutsche Automobilindustrie," Discussion Papers, Research Unit: Knowledge, Production Systems and Work SP III 2008-301, WZB Berlin Social Science Center.
    4. Breuer, Thomas & Holm-Muller, Karin, 2007. "Abschätzung der Wertschöpfungspotenziale im ländlichen Raum durch Biokraftstoffe am Beispiel Nordrhein-Westfalens," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 56(05-06), pages 1-8.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manfred Schöpe, 2006. "Economic effects of the production of bioethanol for use as fuel," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(21), pages 27-36, November.
    2. Breuer, Thomas & Holm-Muller, Karin, 2007. "Abschätzung der Wertschöpfungspotenziale im ländlichen Raum durch Biokraftstoffe am Beispiel Nordrhein-Westfalens," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 56(5/6).
    3. Breuer, Thomas & Holm-Muller, Karin, 2007. "Abschätzung der Wertschöpfungspotenziale im ländlichen Raum durch Biokraftstoffe am Beispiel Nordrhein-Westfalens," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 56(05-06), pages 1-8.

    More about this item

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ifosdt:v:59:y:2006:i:17:p:21-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/ifooode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.