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The Green Mirage: The EU’s Complex Relationship with Palm Oil Biodiesel in the Context of Environmental Narratives and Global Trade Dynamics

Author

Listed:
  • Keith Waters

    (Schar School, George Mason University, Arlington, VA 22201, USA)

  • Suleyman O. Altiparmak

    (James Madison College, Michigan State University, East Lansing, MI 48825, USA)

  • Shade T. Shutters

    (School of Complex Adaptive Systems, Arizona State University, Tempe, AZ 85287, USA)

  • Cameron Thies

    (James Madison College, Michigan State University, East Lansing, MI 48825, USA)

Abstract

In the early 2000s, biofuels like biodiesel and bioethanol were seen as renewable alternatives to petroleum, driven by rising crude oil prices and environmental concerns. Palm oil became a key biodiesel raw material, turning the European Union (EU) into a major importer. However, sustainable palm oil concerns emerged in the EU in 2014, leading to trade disputes and import restrictions, with a goal to phase out palm oil biodiesel by 2030. This research explores the EU’s palm oil biodiesel policy impact, focusing on key producers, EU imports (crude and refined palm oil, biodiesel), the EU’s role in the global biodiesel network, and alignment with a green narrative. Analyzing trade data, we find that, despite concerns, the EU has not significantly reduced palm oil-related imports, highlighting the market’s complex relationship to policy. This suggests that the EU’s commitment to environmentally sustainable economic development may not align with market stakeholders’ preferences, emphasizing the complex interdependencies between the global biodiesel market and policy areas like sustainability, economy, energy, and environment.

Suggested Citation

  • Keith Waters & Suleyman O. Altiparmak & Shade T. Shutters & Cameron Thies, 2024. "The Green Mirage: The EU’s Complex Relationship with Palm Oil Biodiesel in the Context of Environmental Narratives and Global Trade Dynamics," Energies, MDPI, vol. 17(2), pages 1-12, January.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:2:p:343-:d:1316206
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    References listed on IDEAS

    as
    1. Altiparmak, Suleyman Orhun, 2021. "Arctic Drilling in the United States energy revolution context: An accumulated story in environment vs energy contradiction," Energy Policy, Elsevier, vol. 156(C).
    2. Gourich, Wail & Chan, Eng-Seng & Ng, Wei Zhe & Obon, Aaron Anthony & Maran, Kireshwen & Ong, Yi Hui & Lee, Chin Loong & Tan, Jully & Song, Cher Pin, 2022. "Life cycle benefits of enzymatic biodiesel co-produced in palm oil mills from sludge palm oil as renewable fuel for rural electrification," Applied Energy, Elsevier, vol. 325(C).
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