Implementation of biofuel targets

Description:	Policies to enhance the use of biofuels, especially in the transport sector. In the Agricultural economy and forestry 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 and forestry
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 and forestry
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: Agricultural systems
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).