Abstract
We build a tractable partial equilibrium model to study the interactions between the EU biofuel policies (mandate and double-counting of second-generation biofuels) and first- and second-generation biodiesel production. We find that increasing the biodiesel mandate results in a higher share of first-generation biodiesel in total diesel fuel, but leads to a lower share of second-generation biodiesel. The double-counting policy supports the production of second-generation biodiesel at the expense of a lower share of first-generation biodiesel, and increases the consumption of fossil diesel as compared to treating first- and second-generation biodiesel equally. Finally, improved collection of used cooking oil reduces the price of oilseeds and oils thereof, the prices of both biofuel types, and negligibly also the consumer fuel price.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
