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The Economics of Biodiesel and the Central Role of the European Union’s Policies

In: The Economics of Biofuel Policies

Author

Listed:
  • Harry Gorter
  • Dusan Drabik
  • David R. Just

Abstract

Biodiesel averaged 20 percent of total world biofuel production by volume in the period 2010–2012.1 Biodiesel is expected to reach 25 percent of total biofuel volume by 2025. However, its share in vehicle miles traveled is higher because a gallon of biodiesel obtains 91.3 percent of the miles traveled compared to a gallon of diesel whereas ethanol produces an estimated 70 percent of the miles traveled as gasoline—and diesel engines, on average, get approximately 37 percent more miles per gallon than gasoline (see Box 2.2). The European Union, United States, and Brazil are, respectively, the world’s largest producers and consumers of biodiesel. The European Union consumed 42 percent of total biodiesel in 2013 (down from 75 percent in 2005), and it is expected to decline to 40 percent in 2020 (OECD/FAO 2014).

Suggested Citation

  • Harry Gorter & Dusan Drabik & David R. Just, 2015. "The Economics of Biodiesel and the Central Role of the European Union’s Policies," Palgrave Studies in Agricultural Economics and Food Policy, in: The Economics of Biofuel Policies, chapter 0, pages 151-169, Palgrave Macmillan.
    • Handle: RePEc:pal:psachp:978-1-137-41485-4_10
    DOI: 10.1057/9781137414854_10
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