Abstract
The EU today is the main biodiesel producer in the entire world. Many countries are promoting biodiesel production for various reasons: for satisfying their own internal growing need for energy, to ensure fuels’ availability for the transport sector, thus lowering the dependence on fossil fuels, for more efficient combating of climate changes. The actual strategies of sustainable development have determined a very fast increase in biodiesel consumption within the EU, especially since 2005. In this context, using the available data, we assessed the effects of biodiesel consumption by transport on economic growth in the EU over the period 2010-2016. The results based on the panel data approach indicate a positive, but very low impact of energy obtained from biodiesel consumption by transport on the EU’s economic growth. There is only a unidirectional causality relationship between these two variables: the biodiesel consumption Granger caused the EU economic growth from 2010 to 2016. Policy recommendations should focus on the extension of biodiesel consumption for transport within the EU by establishing a higher minim percentage of biodiesel in transport. DOI: http://dx.doi.org/10.5755/j01.ee.30.1.21831
Highlights
Transport is necessary for any economy which strives to be efficient
In 2016, France and Germany continued to be the leaders with high economic growth and high biodiesel consumption by their transport sectors
It is interesting that the Baltic countries, Slovenia and Slovakia shifted in 2016 from the cluster with rather high biodiesel consumption and acceptable economic growth to the cluster with low economic growth and low utilization of biodiesel in transport
Summary
The increase in energy consumption by transport has taken place due to the demand increase in developing countries, mostly BRICs (Brazil, Russia, India and China), the latter registering especially increasing GDP rates. The global demand for biofuels initially increased due to high petroleum prices, volatility of which has predetermined the need for better energy security. The transport sector produces around 25 % of the carbon dioxide emission, speaking globally. For reducing these emissions, the best solution is the use of biofuels. The biofuels are represented by biodiesel, bioethanol and biogas. Bioethanol is frequently used in combination with diesel when it comes to road transport
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