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Eu Biofuel Policies: A Closer Look At Some Collateral Impacts

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  • Kavallari, Aikaterini
  • Gay, Hubertus
  • Burrell, Alison M.

Abstract

The EU's Renewable Energy Directive (2009/28) set an overall target to source 20% of EU energy needs from renewables by 2020. As part of this target, each member state has to achieve at least 10% of their transport fuel consumption from biofuels. The Renewable Energy Directive (2009/28) and the Fuel Quality Directive (2009/30) set out sustainability criteria for biofuel production and procedures for verifying that these criteria are met. Sustainability can be more easily monitored, the greater the share of the land use impacts occur within the EU. This paper investigates two impacts of the biofuel target using the AGLINK-COSIMO model. First, we quantify the net global increase in cropped land resulting from this policy, and examine how its size and geographic changes with the elimination of EU biofuel tariffs. Second, the complex interaction between world price volatility, higher biomass demand and a global stock management is explored.

Suggested Citation

  • Kavallari, Aikaterini & Gay, Hubertus & Burrell, Alison M., 2010. "Eu Biofuel Policies: A Closer Look At Some Collateral Impacts," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188099, International Consortium on Applied Bioeconomy Research (ICABR).
  • Handle: RePEc:ags:itic10:188099
    DOI: 10.22004/ag.econ.188099
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    References listed on IDEAS

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    1. Meyers, William H. & Meyer, Seth D., 2008. "Causes and Implications of the Food Price Surge," FAPRI-MU Report Series 47533, Food and Agricultural Policy Research Institute (FAPRI).
    2. David Dawe, 2009. "The Unimportance of “Low” World Grain Stocks for Recent World Price Increases," Working Papers 09-01, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    3. Christopher L. Gilbert, 2008. "How to Understand High Food Prices," Department of Economics Working Papers 0823, Department of Economics, University of Trento, Italia.
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