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The impact of blending mandates on biofuel consumption, production, emission reductions and fuel prices
RISE Research Institutes of Sweden, Built Environment, System Transition and Service Innovation.ORCID iD: 0000-0003-0352-2464
RISE Research Institutes of Sweden, Built Environment, System Transition and Service Innovation.ORCID iD: 0000-0003-2028-6029
RISE Research Institutes of Sweden, Built Environment, System Transition and Service Innovation.ORCID iD: 0000-0002-5662-570x
2023 (English)In: Energy Policy, ISSN 0301-4215, E-ISSN 1873-6777, Vol. 183, article id 113835Article in journal (Refereed) Published
Abstract [en]

The transport sector accounts for about 20% of EU’s GHG-emissions. Progress in emission reductions has been slow and primarily driven by biofuels promoted through national blending mandates. The mandates differ in whether they are measured in volume, energy, or emission reduction and in how gasoline and diesel are targeted. Due to this, national mandates and their effects have not previously been quantitatively compared on an EU level. In this article we convert the mandates for all EU member states between 2009 and 2020 to a common unit and study their impact on biofuel consumption, production, emission reductions and fuel prices. We find that mandates are driving biofuel consumption in the EU and correlates with emission reductions. Increased mandates have however often been fulfilled by blending biofuels eligible for double counting. We also find that reduction mandates have been effective in encouraging high-performance biofuels. For historical fuel prices, we do not see a clear correlation between countries’ shares of biofuel and consumer fuel prices while the global oil price has a considerable impact. For biofuel production, increased demand drive investments in the EU, but when it comes to localisation of new plants factors such as local infrastructure are more important than national mandates. 

Place, publisher, year, edition, pages
Elsevier Ltd , 2023. Vol. 183, article id 113835
Keywords [en]
Europe; Biofuels; Costs; Emission control; Greenhouse gases; Investments; Biofuels policies; Blending mandate; Double counting; Emission reduction; Energy reduction; Fuel prices; GHG emission; GHGs emissions; RED; Transport sectors; biofuel; emission control; energy policy; European Union; fuel consumption; oil production; price determination; Blending
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:ri:diva-67680DOI: 10.1016/j.enpol.2023.113835Scopus ID: 2-s2.0-85173131317OAI: oai:DiVA.org:ri-67680DiVA, id: diva2:1809982
Note

The project has been financed by the Swedish Energy Agency and f3-Swedish Centre for Renewable Transportation Fuels (Project number: 50479-1 ). Economic support from the Swedish Research Council FORMAS is also gratefully acknowledged ( 2020-00184_Formas ).

Available from: 2023-11-06 Created: 2023-11-06 Last updated: 2023-11-21Bibliographically approved

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Lundberg, LivCintas Sanchez, OliviaZetterholm, Jonas

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