EU Biofuel Policies: What are the Effects on Agricultural Markets?

This paper analyses the impact of the EU's domestic biofuel policies by on the agricultural markets and on indirect land use. The empirical simulations with the partial equilibrium model AGLINK-COSIMO indicate that meeting the blending targets at a minimum of 10% share of biofuels in total transport fuel and maintaining tax exemptions will influence more the oilseed markets and derived products (oilmeals and vegetable oil) because of the high share of biodiesel in the total EU's biofuel production. It will result into increased demand for vegetable oil covered by increased supply of oilseeds either domestically produced or imported, as well as higher imports of vegetable oil, allowing third countries to expand their exports. Agricultural land is expected to be re-distributed with oilseeds having a higher share. The overall effects are of a limited magnitude.

KAVALLARI Aikaterini;  GAY Stephan; 

2010-08-24

ETA Renewable Energies and WIP Renewable Energies

JRC58488

http://www.conference-biomass.com/Conference-Proceedings.626.0.html,    https://publications.jrc.ec.europa.eu/repository/handle/JRC58488,