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Title:Tax exemption for biofuels in Germany : is bio-ethanol really an option for climate policy? PDF Logo
Authors:Henke, Jan Michael
Klepper, Gernot
Schmitz, Norbert
Issue Date:2003
Citation:[Series:] KIel working paper [Editor:] Institut für Weltwirtschaft, Kiel [No.:] 1184
Series/Report no.:Kieler Arbeitspapiere 1184
Abstract:Last year the German Parliament exempted biofuels from the gasoline tax. The promotion of biofuels is being justified by allegedly positive effects on climate, energy, and agricultural policy goals. The paper takes a closer look at bio-ethanol as a substitute for gasoline. We analyze the basic conditions that provide the setting for the production and promotion of biofuels and show that the production of bio-ethanol in Germany is not competitive. Using energy and greenhouse gas balances we demonstrate that a possible increased use of bioethanol to reduce greenhouse gas emissions is inefficient and that there are preferred alternative strategies. In addition, scenarios on the development of the bio-ethanol market are derived from a model that allows for variations in decisive variables and reflects the production and trade chain of bio-ethanol.
Subjects:biofuels , ethanol , climate policy , agricultural policy , gasoline tax , energy balances , GHG balances
JEL:D61
H23
Q25
Q42
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Kieler Arbeitspapiere, IfW

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