Marginal Cost Based Market Potential Analysis of 1st and 2nd Generation Biofuels in Europe

This paper presents an exploratory micro-economic approach to analyse what potential effects the second generation biofuels (assuming the cost structure of the 10th operational plant) can have on the already existing biofuel production markets. Its methodology relies on calculating approximate marginal cost curves for the different biofuel pathways and finding the least cost part of their aggregate function. This methodology can give preliminary estimates of the market shares of the different biomass resources, but also makes it possible to compare the effectiveness of the various regulatory regimes from economics point of view. Further technology based research is needed to assess the capacity cost of second generation because the results are sensitive to this parameter.

SZABO Sandor; 

2009-03-04

ETA-Florance Renewable Energies

JRC45934

https://publications.jrc.ec.europa.eu/repository/handle/JRC45934,