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Economic impact of biofuel chains in France

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  • Sourie, Jean-Claude
  • Treguer, David
  • Rozakis, Stelios

Abstract

Given the current situation with the high price of oil (an average of $53 per barrel in 2005) and the risk of global warming, the European Union (EU) is reinforcing its objectives related to the production of biofuels: they should account for 5.75% of the overall fuel consumption by 2010 in France, as opposed to 1% in 2005. In keeping with the objective set for 2010, the biodiesel derived from rapeseed is still the preferred biofuel (27.5 million hectolitres projected), compared to the ethanol derived from wheat or sugarbeet (9.3 million hectolitres projected). Our model makes it possible to foresee that there will be a competition between food and energy crops by 2006 and that this will occur even before all of the fallow areas are requisitioned. Our paper stresses the fact that the energy and economic advantages of first-generation biofuels are not sufficient to replace large quantities of petroleum resources.

Suggested Citation

  • Sourie, Jean-Claude & Treguer, David & Rozakis, Stelios, 2006. "Economic impact of biofuel chains in France," 2006 Annual meeting, July 23-26, Long Beach, CA 21184, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21184
    DOI: 10.22004/ag.econ.21184
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    References listed on IDEAS

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    1. Shapouri, Hosein & Duffield, James A. & Graboski, Michael S., 1995. "Estimating the Net Energy Balance of Corn Ethanol," Agricultural Economic Reports 34005, United States Department of Agriculture, Economic Research Service.
    2. Paul W. Gallagher & Daniel M. Otto & Mark Dikeman, 2000. "Effects of an Oxygen Requirement for Fuel in Midwest Ethanol Markets and Local Economies," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 22(2), pages 292-311.
    3. Rozakis, S. & Sourie, J. -C., 2005. "Micro-economic modelling of biofuel system in France to determine tax exemption policy under uncertainty," Energy Policy, Elsevier, vol. 33(2), pages 171-182, January.
    4. Gallagher, Paul W. & Otto, Daniel & Dikeman, Mike, 2000. "Effects of an Oxygen Requirement for Fuel in Midwest Ethanol Markets and Local Economies," Staff General Research Papers Archive 5244, Iowa State University, Department of Economics.
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    Cited by:

    1. Clancy, Daragh & Breen, James P. & Butler, Anne Marie & Thorne, Fiona S., 2008. "The economic viability of biomass crops versus conventional agricultural systems and its potential impact on farm incomes in Ireland," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6485, European Association of Agricultural Economists.
    2. Ferede, Tadele & Gebreegziabher, Zenebe & Mekonnen, Alemu & Guta, Fantu & Levin, Jörgen & Köhlin, Gunnar, 2013. "Biofuels, Economic Growth, and the External Sector in Ethiopia: A Computable General Equilibrium Analysis," RFF Working Paper Series dp-13-08-efd, Resources for the Future.

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