Biofuel Consumption and Production Models in the Baltic States

Abstract

Policies supporting biofuel sector development mentions various environmental, social and economic benefits. Every country needs its own bio fuel industry to achieve these benefits but the relationship between industry and consumption can be very different within the country. This poses difficulties in comparing the situation in different countries. The aim of this research is to define the models of biofuel production and consumption and to show their manifestation in the Baltic States, in connection with the opportunities to implement positive effect of biofuels production and con-sumption. Applying the scientific generalization and synthesis methods four types of biofuel pro-duction and consumption models were identified in this paper. Integral character of bio fuel produc-tion in the Baltic States was disclosed using the mean calculation, comparison and graphical data analysis methods. Acceptance of the established bio fuel consumption and production models for the realization of economic and social benefits was also disclosed. Analysing the period of 2010–2015 it was found that the biofuel production and consumption model prevailed in Estonia was fa-vourable only for implementing a very small part of the energy independence and local economic development targets, meanwhile Latvia and Lithuania models have been more favourable for it. JEL Codes: Q10, Q42, Q48. DOI: https://doi.org/10.15544/mts.2017.14