IDEAS home Printed from https://ideas.repec.org/p/aua/wpaper/2011-3.html
   My bibliography  Save this paper

Cost effectiveness of bio-ethanol to reduce carbon dioxide emissions in Greece

Author

Listed:
  • Md. I. Haque

    (Agricultural Economics and Rural Development Department, Agricultural University of Athens)

  • Stelios Rozakis

    (Agricultural Economics and Rural Development Department, Agricultural University of Athens)

  • A. Natsis

    (Department of Natural Resources Management and Agricultural Engineering, Agricultural University of Athens, Greece)

  • M. Borzecka-Walker

    (Institute of Soil and Plant Science, Pulawy, Poland)

  • K. Mizak

    (Institute of Soil and Plant Science, Pulawy, Poland)

Abstract

The purpose of this study is to evaluate ethanol cost- effectiveness with regards to carbon dioxide emissions. Actually, bio-fuel production is only viable thanks to the tax credit policy resulting in economic ‘deadweight’ loss. The environmental performance is assessed under the Life Cycle Assessment (LCA) framework. Economic burden to society to support the activity divided by avoided CO2 equivalent emissions indicates the bio-ethanol cost effectiveness. Agricultural feedstock supply that comprises of sugarbeets, grains and industrial processing sub-models are articulated in a regional sector model. The maximization of total welfare determines optimal crop mix for farmers and the best configurations for industry. This is illustrated for bio-ethanol produced by the ex-sugar industry in Thessaly, Greece. Life cycle activity analysis showed that, at the optimum, CO2 emission is reduced between 1 and 1.5 t of carbon dioxide equivalent per ton of ethanol. The unitary cost falls in the range of 100 to 250 euro per ton of CO2 and it is remarkably dependent on the agricultural policy scenario.

Suggested Citation

  • Md. I. Haque & Stelios Rozakis & A. Natsis & M. Borzecka-Walker & K. Mizak, 2011. "Cost effectiveness of bio-ethanol to reduce carbon dioxide emissions in Greece," Working Papers 2011-3, Agricultural University of Athens, Department Of Agricultural Economics.
  • Handle: RePEc:aua:wpaper:2011-3
    as

    Download full text from publisher

    File URL: http://aoatools.aua.gr/RePEc/aua/wpaper/files/2011_03_rozakis.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Murphy, J.D. & McCarthy, K., 2005. "Ethanol production from energy crops and wastes for use as a transport fuel in Ireland," Applied Energy, Elsevier, vol. 82(2), pages 148-166, October.
    2. Russi, Daniela, 2008. "An integrated assessment of a large-scale biodiesel production in Italy: Killing several birds with one stone?," Energy Policy, Elsevier, vol. 36(3), pages 1169-1180, March.
    3. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers Archive 12881, Iowa State University, Department of Economics.
    4. Haque, Imdadul & Rozakis, Stelios & Ganko, Ewa & Kallivroussis, Leonidas, 2009. "Bio-energy production in the sugar industry: an integrated modeling approach," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58026, European Association of Agricultural Economists.
    5. Nguyen, Thu Lan T. & Gheewala, Shabbir H. & Garivait, Savitri, 2007. "Fossil energy savings and GHG mitigation potentials of ethanol as a gasoline substitute in Thailand," Energy Policy, Elsevier, vol. 35(10), pages 5195-5205, October.
    6. Iliopoulos, Constantine & Rozakis, Stelios, 2010. "Environmental cost-effectiveness of bio diesel production in Greece: Current policies and alternative scenarios," Energy Policy, Elsevier, vol. 38(2), pages 1067-1078, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Quyen Le Luu & Sonia Longo & Maurizio Cellura & Eleonora Riva Sanseverino & Maria Anna Cusenza & Vincenzo Franzitta, 2020. "A Conceptual Review on Using Consequential Life Cycle Assessment Methodology for the Energy Sector," Energies, MDPI, vol. 13(12), pages 1-19, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. 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.
    3. Escobar, Neus & Manrique-de-Lara-Peñate, Casiano & Sanjuán, Neus & Clemente, Gabriela & Rozakis, Stelios, 2017. "An agro-industrial model for the optimization of biodiesel production in Spain to meet the European GHG reduction targets," Energy, Elsevier, vol. 120(C), pages 619-631.
    4. Acheampong, Michael & Ertem, Funda Cansu & Kappler, Benjamin & Neubauer, Peter, 2017. "In pursuit of Sustainable Development Goal (SDG) number 7: Will biofuels be reliable?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 927-937.
    5. 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.
    6. Elena, Galan-del-Castillo & Esther, Velazquez, 2010. "From water to energy: The virtual water content and water footprint of biofuel consumption in Spain," Energy Policy, Elsevier, vol. 38(3), pages 1345-1352, March.
    7. Khatiwada, Dilip & Venkata, Bharadwaj K. & Silveira, Semida & Johnson, Francis X., 2016. "Energy and GHG balances of ethanol production from cane molasses in Indonesia," Applied Energy, Elsevier, vol. 164(C), pages 756-768.
    8. Mark W Rosegrant & Gary Yohe & Mandy Ewing & Rowena Valmonte-Santos & Tingju Zhu & Ian Burton & Saleemul Huq, 2010. "Climate Change and Asian Agriculture," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(1), pages 41-81, June.
    9. Suopajärvi, Hannu & Umeki, Kentaro & Mousa, Elsayed & Hedayati, Ali & Romar, Henrik & Kemppainen, Antti & Wang, Chuan & Phounglamcheik, Aekjuthon & Tuomikoski, Sari & Norberg, Nicklas & Andefors, Alf , 2018. "Use of biomass in integrated steelmaking – Status quo, future needs and comparison to other low-CO2 steel production technologies," Applied Energy, Elsevier, vol. 213(C), pages 384-407.
    10. Tonini, Davide & Vadenbo, Carl & Astrup, Thomas Fruergaard, 2017. "Priority of domestic biomass resources for energy: Importance of national environmental targets in a climate perspective," Energy, Elsevier, vol. 124(C), pages 295-309.
    11. Lotze-Campen, Hermann & von Witzke, Harald & Noleppa, Steffen & Schwarz, Gerald, 2015. "Science for food, climate protection and welfare: An economic analysis of plant breeding research in Germany," Agricultural Systems, Elsevier, vol. 136(C), pages 79-84.
    12. Iriarte, Alfredo & Rieradevall, Joan & Gabarrell, Xavier, 2012. "Transition towards a more environmentally sustainable biodiesel in South America: The case of Chile," Applied Energy, Elsevier, vol. 91(1), pages 263-273.
    13. Lal, R., 2011. "Sequestering carbon in soils of agro-ecosystems," Food Policy, Elsevier, vol. 36(S1), pages 33-39.
    14. Atsonios, Konstantinos & Kougioumtzis, Michael-Alexander & D. Panopoulos, Kyriakos & Kakaras, Emmanuel, 2015. "Alternative thermochemical routes for aviation biofuels via alcohols synthesis: Process modeling, techno-economic assessment and comparison," Applied Energy, Elsevier, vol. 138(C), pages 346-366.
    15. Brian Wright, 2014. "Global Biofuels: Key to the Puzzle of Grain Market Behavior," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 73-98, Winter.
    16. Kriegler, Elmar, 2011. "Comment," Energy Economics, Elsevier, vol. 33(4), pages 594-596, July.
    17. Chen, Yuche & Zhang, Yunteng & Fan, Yueyue & Hu, Kejia & Zhao, Jianyou, 2017. "A dynamic programming approach for modeling low-carbon fuel technology adoption considering learning-by-doing effect," Applied Energy, Elsevier, vol. 185(P1), pages 825-835.
    18. repec:dau:papers:123456789/10752 is not listed on IDEAS
    19. Proost, Stef & Van Dender, Kurt, 2012. "Energy and environment challenges in the transport sector," Economics of Transportation, Elsevier, vol. 1(1), pages 77-87.
    20. 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.
    21. Acquaye, Adolf A. & Sherwen, Tomás & Genovese, Andrea & Kuylenstierna, Johan & Lenny Koh, SC & McQueen-Mason, Simon, 2012. "Biofuels and their potential to aid the UK towards achieving emissions reduction policy targets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5414-5422.

    More about this item

    Keywords

    Cost effectiveness; ethanol; mathematical programming; life cycle assessment; greenhouse gases;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aua:wpaper:2011-3. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/daauagr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kremmydas dimitrios (email available below). General contact details of provider: https://edirc.repec.org/data/daauagr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.