Environmental Implications of Biofuels - Theoretical and Empirical Analysis for the EU and US

Abstract

In this paper, we present a theoretical framework on positive and negative environmental implications of biofuels and underpin this discussion with an empirical analysis for the European Union 27 (EU) and the United States of America (US). Based on the framework and by means of time series analysis, we estimate CO2 reductions as a positive result of biofuels consumption and the fertilization increase as a negative effect of biofuels production in the EU and US in 2006-2018. Furthermore, we point out a number of questions to be addressed with regard to environmental issues in the biofuels policy in the future.