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Background To The Production And Use Of Bioethanol As Fuel In Hungary

Author

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  • Reczey, Gabor
  • Bai, Attila

Abstract

In Hungary difficulties in the utilisation of bio-fuels are mainly caused by problems of economy and not by technical problems. Currently, the key factor in development – according to the authors of this article – would be a new version of the relevant legal provisions, which would allow MOL (the Hungarian Gas and Oil Company) and other big consumers (like transport companies BKV, DKV), to mix bio-fuels in a higher proportion than 5% with 0% excise tax. Environmental, technical, and rural development aspects support such a change in the law. Moreover the 0% excise tax on bio-fuels is used in many other countries as well without significant deficit in the national finances. This would have a positive effect on the production and utilisation of bio-fuels, even in the present agricultural situation. Moreover, this would provide a sound economic basis for future developments and a perspective for other bio-fuel producers.

Suggested Citation

  • Reczey, Gabor & Bai, Attila, 2006. "Background To The Production And Use Of Bioethanol As Fuel In Hungary," GAZDÁLKODÁS: Scientific Journal on Agricultural Economics, Karoly Robert University College, vol. 50(Special E), pages 1-6.
    • Handle: RePEc:ags:gazdal:141146
    DOI: 10.22004/ag.econ.141146
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    Cited by:

    1. Janos Szlavik & Maria Csete, 2012. "Climate and Energy Policy in Hungary," Energies, MDPI, vol. 5(2), pages 1-24, February.

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