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BACKGROUND TO THE PRODUCTION AND USE OF BIOETHANOL AS FUEL IN HUNGARY

Gabor Reczey and Attila Bai

GAZDÁLKODÁS: Scientific Journal on Agricultural Economics, 2006, vol. 50, issue Special Edition 17, 6

Abstract: In Hungary difficulties in the utilisation of bio-fuels are mainly caused by problems of economy and not by technical problems. Currently, the key factor in development – according to the authors of this article – would be a new version of the relevant legal provisions, which would allow MOL (the Hungarian Gas and Oil Company) and other big consumers (like transport companies BKV, DKV), to mix bio-fuels in a higher proportion than 5% with 0% excise tax. Environmental, technical, and rural development aspects support such a change in the law. Moreover the 0% excise tax on bio-fuels is used in many other countries as well without significant deficit in the national finances. This would have a positive effect on the production and utilisation of bio-fuels, even in the present agricultural situation. Moreover, this would provide a sound economic basis for future developments and a perspective for other bio-fuel producers.

Keywords: Crop Production/Industries; Production Economics; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:gazdal:141146

DOI: 10.22004/ag.econ.141146

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