Using Used Cooking Oil (UCO) for biofuel production: Effects on global land use and interlinkages with food and feed production

Ruth Delzeit, Tobias Heimann, Franziska Schuenemann and Mareike Soeder

No 333075, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: The production of advanced biofuels aims at replacing food and feed crops with feedstocks without negative side effects on food prices and land use. Biodiesel from so-called used cooking oil (UCO) has reached a substantial market share particularly in the EU due to political support schemes. This paper quantifies the market effects of an increased use of UCO for biofuel production on agricultural and related markets by using the global recursive-dynamic general equilibrium model DART-BIO which accounts for the interlinkages with food and feed production This paper describes in detail how to introduce UCO and the related biodiesel production (UCOME) into the GTAP 9 database and how to integrate the sectors into the disaggregated conventional biofuel production sectors in the DART-BIO model. We quantify and analyze the effects of an increased use of UCO for biofuel production on global food prices and land use by comparing scenarios of global biofuel production with and without UCO in the production portfolios. In addition, we test for the effect of the different mechanisms of the EU biofuel mandate such as the double-counting of advanced biofuels and the cap on conventional biofuels. Our main focus is the question whether the use of UCO indeed decreases the market effects of conventional biofuels and how the double-counting mechanism affects to use of UCOME and other transportation fuels. In addition, we evaluate the amount of UCO used for UCOME production in the different scenarios against limited collection rates of UCO inside and outside the EU.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:333075

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