Environment and Resources

Project: Alternative Options for the Promotion of Renewable Energies in Europe

Project Duration

03/2005 - 09/2005 (finalized)

Commissioned by

IMACE

Project Team (RWI)

Prof. Dr. Manuel Frondel (Chief), Prof. Dr. Jörg Peters

Summary

In order to meet the obligations of the Kyoto protocol, which entered into force on February 16, 2005, the European Union pursues two major strategies: First of all, there is the EU emission trading system that is widely accepted to be an efficient instrument to combat climate change. Second, the EU sets objectives for the share of Renewable Energy in European electricity generation and fuel consumption. Furthermore, on the basis of the 2004's gasoline tax exemptions for biofuels, which are guaranteed until 2009, the share of biofuels is supposed to be pushed to 2 % by 2005 and 5.75% by 2010, as required by the EU Directive 2003/30. As a consequence these tax exemptions, oil companies increasingly blend conventional fuel with biofuels - it is allowed to blend conventional diesel up to a share 5% biodiesel without notification. The objective of this project is to analyse the environmental effects and to emphasize the economic consequences and economic inefficiencies of these kinds of government aid. The results of our analysis will lead to recommendations on possible actions for policy-makers and stake-holders. The focus of our analysis is on the markets for biogenic resources, in particular biodiesel and animal and vegetable oils and fats. In short, the focus of this study is on the following issues: The actual environmental effects of biodiesel and the economic efficiency of the promotion of biodiesel in the transport sector as a measure of emission reduction. The effects of the promotion of renewable energies on the efficiency of other climate policy instruments, such as the European emissions trading system.

Selected project related publications

Articles in Peer-reviewed Journals

2007

Frondel, M. and J. Peters (2007), Biodiesel: Eine teure Klimaschutzoption. Zeitschrift für Umweltpolitik und Umweltrecht 30 (2): 233-251.

Frondel, M. and J. Peters (2007), Biodiesel: A New Oildorado?. Energy Policy 35 (3): 1675-1684.

Articles in Other Journals

2006

Frondel, M. and J. Peters (2006), Biodiesel: Eine teure Klimaschutzoption. Erneuerbare Energien 16 (3): 66-68.

Frondel, M. and J. Peters (2006), Biodiesel: Nicht nur eitel Sonnenschein. et - Energiewirtschaftliche Tagesfragen 56 (3): 74-77.

RWI Reports

2006

RWI (2006), Biodiesel: eine nachhaltige Alternative?. RWI Projektberichte download

2005

RWI (2005), Questioning the Sustainability of Biodiesel. RWI Projektberichte download

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