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Impact of increasing liquid biofuel usage on EU and UK agriculture

Author

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  • Kim, In Seck
  • Binfield, Julian
  • Patton, Myles
  • Zhang, Lichun
  • Moss, Joan

Abstract

The biofuels industry in both the UK and the EU as a whole has expanded significantly in recent years in response to various EU biofuel policy initiatives. Further expansion of biofuel demand will increase the impact of the biofuels sector on agricultural markets. This paper examines the impact that increasing levels of first generation biofuel demand to 10% of total transport fuel use in the UK and other EU Member States would have on agricultural markets within the EU and specifically the UK using a partial equilibrium modelling system. Increasing overall biodiesel demand raises demand for vegetable oil and oilseed and in turn their prices. The increased grain demand in response to the increased bioethanol demand is mostly sourced from changes in EU net trade.

Suggested Citation

  • Kim, In Seck & Binfield, Julian & Patton, Myles & Zhang, Lichun & Moss, Joan, 2013. "Impact of increasing liquid biofuel usage on EU and UK agriculture," Food Policy, Elsevier, vol. 38(C), pages 59-69.
    • Handle: RePEc:eee:jfpoli:v:38:y:2013:i:c:p:59-69
    DOI: 10.1016/j.foodpol.2012.10.006
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