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Analysing the implication of the EU 20-10-20 targets for world vegetable oil production

Stephan Hubertus Gay, Marc Mueller and Federica Santuccio

No 6495, 107th Seminar, January 30-February 1, 2008, Sevilla, Spain from European Association of Agricultural Economists

Abstract: The European Commission proposes a minimum of 10 % biofuels in the total transport fuel use by 2020. The new 10% minimum target in 2020 is combined with the existing regulation, which fixes the target at 5.75% in 2010. This paper will in particular investigates how a full implementation of the 20- 10-20 targets would affect production and trade of oil plants in the EU and its main trade partners on this commodity markets, particularly Malaysia and Indonesia. The global general equilibrium model GLOBE is used to carry out the policy scenarios and to assess the effects on oil palm plantation area in Malaysia and Indonesia. The results show that the increased EU bio-diesel target will not significantly influence the expansion of palm oil production in Indonesia and Malaysia.

Keywords: Crop Production/Industries; International Relations/Trade; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 20
Date: 2008
New Economics Papers: this item is included in nep-ene and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa107:6495

DOI: 10.22004/ag.econ.6495

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