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Will EU biofuel policies affect global agricultural markets?

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  • Martin Banse
  • Hans van Meijl
  • Andrzej Tabeau
  • Geert Woltjer

Abstract

This article assesses the implications of the EU Biofuels Directive (BFD) using a computable general equilibrium framework with endogenous land supply. The results show that, without policy intervention to stimulate the use of biofuel crops, the targets of the BFD will not be met. With the BFD, the enhanced demand for biofuel crops has a strong impact on agriculture globally and within Europe, leading to an increase in land use. On the other hand, the long-term declining trend in real agricultural prices may slow down or even reverse. Oxford University Press and Foundation for the European Review of Agricultural Economics 2008; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Martin Banse & Hans van Meijl & Andrzej Tabeau & Geert Woltjer, 2008. "Will EU biofuel policies affect global agricultural markets?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(2), pages 117-141, June.
    • Handle: RePEc:oup:erevae:v:35:y:2008:i:2:p:117-141
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    File URL: http://hdl.handle.net/10.1093/erae/jbn023
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