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Analysing the implication of the EU 20-10-20 targets for world vegetable oil production

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  • Gay, Stephan Hubertus
  • Mueller, Marc
  • Santuccio, Federica

Abstract

The European Commission proposes a minimum of 10 % biofuels in the total transport fuel use by 2020. The new 10% minimum target in 2020 is combined with the existing regulation, which fixes the target at 5.75% in 2010. This paper will in particular investigates how a full implementation of the 20- 10-20 targets would affect production and trade of oil plants in the EU and its main trade partners on this commodity markets, particularly Malaysia and Indonesia. The global general equilibrium model GLOBE is used to carry out the policy scenarios and to assess the effects on oil palm plantation area in Malaysia and Indonesia. The results show that the increased EU bio-diesel target will not significantly influence the expansion of palm oil production in Indonesia and Malaysia.

Suggested Citation

  • Gay, Stephan Hubertus & Mueller, Marc & Santuccio, Federica, 2008. "Analysing the implication of the EU 20-10-20 targets for world vegetable oil production," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6495, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa107:6495
    DOI: 10.22004/ag.econ.6495
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    References listed on IDEAS

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    1. Scott McDonald & Sherman Robinson & Karen Thierfelder, 2007. "Globe: A SAM Based Global CGE Model using GTAP Data," Departmental Working Papers 14, United States Naval Academy Department of Economics.
    2. Oecd, 2006. "Agricultural Market Impacts of Future Growth in the Production of Biofuels," OECD Papers, OECD Publishing, vol. 6(1), pages 1-57.
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