Integrated Impact Assessment of Biofuel Support Policies in Europe
Biofuels production is growing rapidly mainly due to market forces and policy support. This increase in biofuels production raises concerns about the impacts on food prices, trade flows, land use and the environment. Understanding the economic and environmental implications of promoting the use of biomass for energy production is then crucial and it is one of the main research topics of the AGRITRADE action. The main objective of the project is to analyse the economic and environmental effects of biofuel support policies in Europe.
The project “Integrated Impact Assessment of an Increase in Biofuel Demand in Europe: The Economic and Technological Dimension” aims to analyse the economic and environmental effects of biofuel support policies in Europe.
Even if a number of studies can be found, the economic literature on the impacts of biofuels on agricultural markets is lacking in many aspects. Most economic models do not capture the interactions between biofuels production and energy markets. Within this project, a modelling framework that accounts for the linkages between agricultural and energy markets will be developed. The specific objectives of the study are the following: 1- adaptation of the agricultural sector model CAPRI to cover biofuel policies at Member State Level; 2- linking of the CAPRI model with an energy model to capture the relationships between agricultural and energy markets; 3- analysis of relevant policy scenarios.
Ongoing project to provide:
An endogenous biofuel module in the CAPRI modeling system, with linkages to an energy model
An integrated assessment of the EU Biofuels Directive, including various economic and environmental effects related to agricultural land use.
Modelling of Energy-Crops in Agricultural Sector Models
Details on the CAPRI model: http://www.capri-model.org/