The Potenti̇al of the European Uni̇on Countri̇es to Produce Bi̇omass for Bi̇odi̇esel Producti̇on and Consumpti̇on Purposes

Abstract

This article aims at evaluating the capacity of agriculture in the member states of the European Union regarding the production of biodiesel from biomass as well as identification and empirical verification of relationships between the rapeseed market and the consumption of biodiesel. The studies were based on panel data for the EU-28 member states in the period 2010-2013 obtained from Eurostat. The results of the studies point to significant differentiation in the production and consumption of biodiesel and its share in the consumption of liquid fuels in the transport sector in the EU. In 2010-2013 the consumption of biodiesel in EU countries exceeded 10.5 M TOE, with 2012 being a unique year when the consumption of biodiesel increased to nearly 12 M TOE. France and Germany are the leaders in the consumption of biodiesel in the EU; their consumption accounts for about 40% of the EU’s consumption. In the same period in the EU countries rape was cultivated over 6673.7 k ha, with the largest area recorded also in France (1516.4 k ha) and in Germany (1390.4 k ha) - the total area of rapeseed crops in those countries accounted for 43% of the total area in the EU. In this period the annual yield of rapeseed in the 28 member states of the EU on average amounted to 19979.4 k t, 50.3% of which were crops from France and Germany. This article proposes the construction of a theoretical model describing the relationship between the consumption of biodiesel and the key determinants of its production. The studies carried out show that the variable having the strongest impact on the consumption of biodiesel in the countries of the EU is the price of rapeseed (smaller-the-better characteristic). At the same time it was demonstrated that the consumption of biodiesel is stimulated by the supply of rapeseed.

Significance of Agriculture for Bioeconomy in the Member States of the European Union

“…In the European Union, the liquid biofuels sector accounted for 0.61% of the turnover of the EU bioeconomy as a whole in 2017, which denoted an increase in comparison with 2008 (0.5%). An even higher share and growth rate was recorded in the bioenergy sector, where the share in the total turnover of the bioeconomy increased from 0.28% in 2008 to 0.86% in 2017, which corroborates the growing importance of these products for the proper functioning of the EU economy, while implementing the principles of sustainable development [54].…”