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Questions of Costs About the French Bio-Fuel Sector by Year 2010

Author

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  • Treguer, David
  • Sourie, Jean-Claude
  • Rozakis, Stelios

Abstract

By the end of year 2010, each member state of the European Union (the EU) ought to incorporate 5.75% of bio-fuels in the total of fuels used for transportation purposes. In order to achieve such a target, tax incentives are implemented by the French government given that the production of bio-fuels still remains unprofitable, even if oil prices are about $60/barel. After a brief introduction (1), we will first demonstrate the importance borne by the cost of agricultural raw material in the total cost of biofuels (2). For this purpose a sequential multi annual LP model is used (3). Emphasis must be placed on the possible competition between food and energy crops, should the production of energy crops require land exceeding the mandatory 10% set-aside (4). An assessment of the profitability of the different types of bio-fuels is then carried out (5).

Suggested Citation

  • Treguer, David & Sourie, Jean-Claude & Rozakis, Stelios, 2005. "Questions of Costs About the French Bio-Fuel Sector by Year 2010," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24560, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24560
    DOI: 10.22004/ag.econ.24560
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    File URL: https://ageconsearch.umn.edu/record/24560/files/pp05tr01.pdf
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    References listed on IDEAS

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    1. Tareen, Irfan Y. & Wetzstein, Michael E. & Duffield, James A., 2000. "Biodiesel As A Substitute For Petroleum Diesel In A Stochastic Environment," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(2), pages 1-9, August.
    2. Rozakis, S. & Sourie, J. -C., 2005. "Micro-economic modelling of biofuel system in France to determine tax exemption policy under uncertainty," Energy Policy, Elsevier, vol. 33(2), pages 171-182, January.
    3. Tareen, Irfan Y. & Wetzstein, Michael E. & Duffield, James A., 2000. "Biodiesel as a Substitute for Petroleum Diesel in a Stochastic Environment," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(2), pages 373-381, August.
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    Cited by:

    1. Annalisa Zezza, 2007. "The economic and environmental sustainability of biofuel production," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, November.
    2. Clancy, Daragh & Breen, James P. & Butler, Anne Marie & Thorne, Fiona S., 2008. "The economic viability of biomass crops versus conventional agricultural systems and its potential impact on farm incomes in Ireland," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6485, European Association of Agricultural Economists.

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