Implementation of biofuel targets
|Description:||Policies to enhance the use of biofuels, especially in the transport sector. In the Agricultural economy component only 'first generation' crops are taken into account. The policy is implemented as a budget-neutral policy from government perspective, e.g. a subsidy is implemented to achieve a certain share of biofuels in fuel production and an end-user tax is applied to counterfinance the implemented subsidy.|
|Reference:||Banse et al., 2008|
|Is implemented in:||Agricultural economy|
|Associated theme items:||Energy demand (Energy), Energy system (Energy), Other energy (Energy), Agricultural land use (Land use), Eco goods and services (NB), Land cover (NB), Other nature and biodiversity (NB), Climate mitigation (Climate)|
Associated policy response component
Component: Air pollution and energy policies
Page: Air pollution and energy policies/Policy issues
Component: Land and biodiversity policies
Page: Land and biodiversity policies/Agricultural demand
Effects of this policy intervention on components
Component: Agricultural economy
Effect : Obligatory biofuel blending increases the demand for biofuel crops, e.g. maize and oil crops, which causes higher prices. Secondly, production will be increased and/or demand for food will decrease, due to these higher prices. Production can be increased by increasing external inputs, labour or land expansion.
Component: Land-use allocation
Effect : Targets for biofuel production/blending impact agricultural production and consequently land use.
Component: Terrestrial biodiversity
Effect : Targets for biofuel production/blending impact terrestrial biodiversity in two ways. Firstly, land used for biofuel crops usually has a negative impact on biodiversity. Secondly, mitigated climate change - due to the use of biofuels - probably has a positive impact on future biodiversity (change).
Component: Energy supply