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Modelling production cost scenarios for biofuels and fossil fuels in Europe

Author

Listed:
  • Festel, Gunter
  • Würmseher, Martin
  • Rammer, Christian
  • Boles, Eckhard
  • Bellof, Martin

Abstract

This paper presents the results of a calculation model for biofuel production costs in 2015 and 2020 based on raw material price projections and considering scale and learning effects. Distinguishing six types of biofuels, the paper finds that scale economies and learning effects are critical for 2nd generation biofuels to become competitive. In case these effects can be utilized, cost saving potentials for 2nd generation biofuels are significant.

Suggested Citation

  • Festel, Gunter & Würmseher, Martin & Rammer, Christian & Boles, Eckhard & Bellof, Martin, 2013. "Modelling production cost scenarios for biofuels and fossil fuels in Europe," ZEW Discussion Papers 13-075, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:13075
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    References listed on IDEAS

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    More about this item

    Keywords

    Biofuels; Production Cost Scenarios; Raw Material Price Projection; Conversion Costs;

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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