From a rise in B to a fall in C? SVAR analysis of environmental impact of biofuels

Pavel Ciaian, d'Artis Kancs, Giuseppe Pirolix and Miroslava Rajcaniova

No 516223, Working Papers of LICOS - Centre for Institutions and Economic Performance from KU Leuven, Faculty of Economics and Business (FEB), LICOS - Centre for Institutions and Economic Performance

Abstract: This is the rst paper that econometrically estimates the impact of rising Bioenergy production on global CO2 emissions. We apply a structural vector autoregression (SVAR) approach to time series from 1961 to 2009 with annual observation for the world biofuel production and global CO2 emissions. We nd that in the medium- to long-run biofuels signicantly reduce global CO2 emissions: the CO2 emission elasticities with respect to biofuels range between -0.57 and -0.80. In the short-run, however, biofuels may increase CO2 emissions temporarily. Our ndings complement those of life-cycle assessment and simulation models. However, by employing a more holistic approach and obtaining more robust estimates of environmental impact of biofuels, our results are particularly valuable for policy makers.

Keywords: SVAR; time-series econometrics; biofuels; CO2 emissions; environment (search for similar items in EconPapers)
Date: 2015-06-23
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Published in LICOS discussion paper series 371/2015 , pages 1-21

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Related works:
Journal Article: From a rise in B to a fall in C? SVAR analysis of environmental impact of biofuels (2015)
Working Paper: From a rise in B to a fall in C? SVAR analysis of environmental impact of biofuels (2015)
Working Paper: From rise in B to fall in C? Global environmental impacts of biofuels (2014)
Working Paper: From a rise in B to a fall in C? Environmental impact of biofuels (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ete:licosp:516223

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