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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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Suggested Citation

  • Frondel, Manuel & Peters, Jorg, 2007. "Biodiesel: A new Oildorado?," Energy Policy, Elsevier, vol. 35(3), pages 1675-1684, March.
  • Handle: RePEc:eee:enepol:v:35:y:2007:i:3:p:1675-1684
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    1. 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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    Cited by:

    1. Milazzo, M.F. & Spina, F. & Cavallaro, S. & Bart, J.C.J., 2013. "Sustainable soy biodiesel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 806-852.
    2. 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.
    3. Peters, Jörg & Thielmann, Sascha, 2008. "Promoting biofuels: Implications for developing countries," Energy Policy, Elsevier, vol. 36(4), pages 1538-1544, April.
    4. Ragaglini, G. & Triana, F. & Villani, R. & Bonari, E., 2011. "Can sunflower provide biofuel for inland demand? An integrated assessment of sustainability at regional scale," Energy, Elsevier, vol. 36(4), pages 2111-2118.
    5. 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.
    6. 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.
    7. 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).
    8. 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.
    9. Annalisa Zezza, 2007. "The economic and environmental sustainability of biofuel production," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, November.
    10. 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.
    11. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M., 2008. "Germany's solar cell promotion: Dark clouds on the horizon," Energy Policy, Elsevier, vol. 36(11), pages 4198-4204, November.
    12. Döhrn, Roland & an de Meulen, Philipp & Kitlinski, Tobias & Schmidt, Torsten & Vosen, Simeon, 2011. "Die wirtschaftliche Entwicklung im Ausland: Aufschwung setzt sich fort - Divergenzen bleiben groß," RWI Konjunkturberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, vol. 62(1), pages 5-37.
    13. 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.
    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. Milazzo, M.F. & Spina, F. & Primerano, P. & Bart, J.C.J., 2013. "Soy biodiesel pathways: Global prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 579-624.
    16. repec:zbw:rwirep:0040 is not listed on IDEAS
    17. Kirrolia, Anita & Bishnoi, Narsi R. & Singh, Rajesh, 2013. "Microalgae as a boon for sustainable energy production and its future research & development aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 642-656.
    18. Koizumi, Tatsuji & Ohga, Keiji, 2008. "Impacts of the Brazilian Bio-Diesel Program on the World Soybean and Soybean Products Market: An Econometric Simulation Approach," Japanese Journal of Rural Economics, Agricultural Economics Society of Japan (AESJ), vol. 10.
    19. Michiel Keyzer & Max Merbis & Roelf Voortman, 2008. "The Biofuel Controversy," De Economist, Springer, vol. 156(4), pages 507-527, December.
    20. 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.
    21. Cheikh, Kezrane & Sary, Awad & Khaled, Loubar & Abdelkrim, Liazid & Mohand, Tazerout, 2016. "Experimental assessment of performance and emissions maps for biodiesel fueled compression ignition engine," Applied Energy, Elsevier, vol. 161(C), pages 320-329.
    22. 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.
    23. 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.
    24. Milazzo, M.F. & Spina, F. & Vinci, A. & Espro, C. & Bart, J.C.J., 2013. "Brassica biodiesels: Past, present and future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 350-389.

    More about this item

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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