EU Biofuel Policies: What are the Effects on Agricultural Markets?

A. Kavallari & S.H. Gay
This paper analyses the impact of the EU's domestic biofuel policies by on the agricultural markets and on indirect land use. The empirical simulations with the partial equilibrium model AGLINK­COSIMO indicate that meeting the blending targets at a minimum of 10% share of biofuels in total transport fuel and maintaining tax ex­emptions will influence more the oilseed markets and derived products (oilmeals and vegetable oil) because of the high share of biodiesel in the total...