Biofuel Subsidies

Biofuel production and consumption has soared over the last decade. This expansion has not been solely in response to market forces; rather, government policies, such as subsidies and mandated use of biofuels, have been key factors. Government support for biofuels has been driven by the need to address concerns related to the environment, energy security, and rural development. However, the cost-effectiveness of achieving these goals under current subsidy schemes is often low.

Research

Cost-Effectiveness Assessments

This series of reports provides cost-effectiveness assessments of biofuel policies in the EU and a range of EU countries.

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EU biofuel policy and palm oil

The report seeks to address one of the blind spots in the biofuel policy making, namely the increased use of palm oil in biodiesel produced and consumed in the European Union. According to Oil World data, the EU biofuels industry has increased its use of palm oil as biodiesel feedstock by 365 per cent over 2006–2012, from 0.4 to 1.9 million tonnes per year. The additional demand can be linked primarily to the growth in biodiesel production stimulated by government policies during the same period.Read More

A Review of Projected Biofuel Prices for the United Kingdom

This study conducts an ex-post analysis to assess a selection of key data relating to the use of the UK’s Department for Transports (DfT) FQD model. The FQD model projects future biofuel prices based on a number of input assumptions relating to fossil-fuel prices (petrol and diesel) and the operational costs (OPEX) of biofuel producing refineries (principally input costs relating to the use of biofeedstocks). This study emphasizes the uncertainty under which policy makers must operate when developing biofuel price projections.

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Biofuels - The State of Play, 2012

This paper summarizes and discusses policy literature on the state of play of the over US$ 20 billion in subsidies for biofuel production and consumption. In particular, it examines the influence of three dynamic factors: the “food versus fuel” debate, advanced biofuels developments and the austerity policies necessitated by the financial and economic crisis.

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Biofuels - At What Cost?

The Biofuels - At What Cost? series of reports identifies and quantifies biofuel subsidies in a number of developed and developing countries. These reports offer some of the most comprehensive and robust estimates of biofuel subsidies currently available. 

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Subsidies to Different Energy Types: Fossil Fuels, Renewables, Nuclear and Biofuels

These studies review knowledge to date on the scale of subsidies to electric power and to transport. They summarize estimates of subsidies to fossil-fuels, renewable power, nuclear power and biofuels, and discuss how subsidies to different energy types might be compared.

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Biofuels Policy Briefs

Policy briefs on biofuels subsidies.

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Biofuel Resources

Resources for identifying, measuring and assessing biofuel subsidies.

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