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Biofuel market and carbon modeling to evaluate French biofuel policy

Author

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  • Frédérick Bernard

    (IFPEN - IFP Energies nouvelles)

  • Anne Prieur

    (IFPEN - IFP Energies nouvelles)

Abstract

In order to comply with European objectives, France has set up an ambitious biofuel plan. This plan is evaluated considering two criteria: tax exemption need and GHG emission savings. An economic marginal analysis and a life cycle assessment (LCA) are provided using a coupling procedure between a partial agro-industrial equilibrium model and a refining optimization model. Thus, we are able to determine the minimum tax exemption needed to place on the market a targeted quantity of biofuel by deducing the agro-industrial marginal cost of biofuel production to the biofuel refining long-run marginal revenue. In parallel, a biofuels LCA is carried out using model outputs. Such a method avoid common allocation problems between joint products. The French biofuel plan is evaluated for 2008, 2010 and 2012 using prospective scenarios. Results suggest that biofuel competitiveness depends on crude oil prices and petroleum products demands. Consequently, biofuel tax exemption does not always appear to be necessary. LCA results show that biofuels production and use, from «seed to wheel», would facilitate the French Government's to compliance with its «Plan Climat» objectives by reducing up to 5% GHG emissions in the French road transport sector by 2010.

Suggested Citation

  • Frédérick Bernard & Anne Prieur, 2006. "Biofuel market and carbon modeling to evaluate French biofuel policy," Working Papers hal-02469003, HAL.
    • Handle: RePEc:hal:wpaper:hal-02469003
    Note: View the original document on HAL open archive server: https://ifp.hal.science/hal-02469003
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    References listed on IDEAS

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    1. 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.
    2. Pierru, Axel, 2007. "Allocating the CO2 emissions of an oil refinery with Aumann-Shapley prices," Energy Economics, Elsevier, vol. 29(3), pages 563-577, May.
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    4. Ignaciuk, A. & Vohringer, F. & Ruijs, A. & van Ierland, E.C., 2006. "Competition between biomass and food production in the presence of energy policies: a partial equilibrium analysis," Energy Policy, Elsevier, vol. 34(10), pages 1127-1138, July.
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    Cited by:

    1. Albert Banal-Estañol & Jeremy Eckhause & Olivier Massol, 2015. "Incentives for early adoption of carbon capture technology: further considerations from a European perspective," Working Papers hal-02475485, HAL.
    2. Vincent Brémond & Emmanuel Hache & Tovonony Razafindrabe, 2015. "On the link between oil price and exchange rate : A time-varying VAR parameter approach," Working Papers hal-03206684, HAL.
    3. Anthony Paris, 2016. "The Effect of Biofuels on the Link between Oil and Agricultural Commodity Prices: A Smooth Transition Cointegration Approach," EconomiX Working Papers 2016-5, University of Paris Nanterre, EconomiX.

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