Research Seminar

Yet another reform of EU biofuel policies: Impacts of the latest reform of the European Union’s Renewable Energy Directive — Tobias Heimann

11 Aug 2020

Institut für Weltwirtschaft


Tobias Heimann (Kiel Institute)


The latest Renewable Energy Directive (REDII) by the European Union (EU) provides an updated framework for the use of renewable energy in the EU transport sector until 2030. We employ the computable general equilibrium (CGE) model DART-BIO for a scenario-based policy analysis and evaluate different possible futures of biofuel use within the specification of the RED II. Our results show that conventional biofuels will not become cost competitive to oil-based fuels. Moreover, we demonstrate the impact of the RED II specifications on the global production of food and feed crops. A further focus of this paper lies on the palm-oil phase out as feedstock for biofuels in the EU, to halt deforestation and land use change in tropical countries. This study shows that the regulation rather acts as a technical barrier to trade, discriminating palm-oil producing countries in favour of European rapeseed producers without any large effects on palm fruit cultivation in the respective countries.


R. Delzeit (Kiel Institute) — T. Heimann (Kiel Institute) — M. Söder (Kiel Institute) — F. Schuenemann (Kiel Institute)


Virtuall via Gotomeeting
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