| ID | 128045 |
| Title Proper | Biofuels, tax policies and oil prices in France |
| Other Title Information | insights from a dynamic CGE model |
| Language | ENG |
| Author | Doumax, Virginie ; Philip, Jean-Marc ; Sarasa, Cristina |
| Publication | 2014. |
| Summary / Abstract (Note) | The 2009 Renewable Energies Directive (RED) has set up ambitious targets concerning biofuel consumption in the European Union by 2020. Nevertheless, budgetary constraints and growing concerns about the environmental integrity of first-generation biofuels have imposed a phasing out of the fiscal instruments to promote them. Focusing on France, this paper combines an exogenous increase in oil prices and tax policies on fossil fuels. The objective is to determine the efficiency of an alternative incentive scheme for biodiesel consumption based on a higher price of the fossil fuel substitute. Policy simulations are implemented through a dynamic computable general equilibrium (CGE) model calibrated on 2009 French data. The results show that the 10% biodiesel mandate set by the RED would not be achieved even if the fixed taxes on diesel reach the same level as those on gasoline. Although integrating the rise in oil prices into the fiscal framework improves the biodiesel penetration rate, it remains below the target. Moreover, we find that the effects of biofuel consumption are limited to the biofuel chain sectors. In other agricultural sectors, the substitution effect of biodiesel with diesel is partially offset by the pricing effect induced by higher energy production costs. |
| `In' analytical Note | Energy Policy Vol. 66, No. ; March 2014: p.603-614 |
| Journal Source | Energy Policy Vol. 66, No. ; March 2014: p.603-614 |
| Key Words | Energy Policy ; Biofuels ; Tax Policies ; Oil Prices ; Petro Prices ; Petro Crisis ; France ; CGE Model ; Dynamic CGE Model ; Energy Sources ; Higher Energy Production Costs ; Pricing Effects ; Renewable Energies Directive - RED ; Fossil Fuel Substitute ; Economic Context ; French Energy Policy |