Biofuels - At What Cost?
Summary
The document examines the economic implications of increasing the United Kingdom's biofuel blending mandate from 4-5 per cent to 10-15 per cent to comply with the EU's Renewable Energy Directive. It investigates various cost drivers, including government administration of the Renewable Transport Fuel Obligation, agricultural subsidies under the CAPs Single Payment Scheme, potential tax revenue losses from biofuel exemptions, and increased consumer prices and engine damage.
Key insights
- The U.K. government is evaluating policies to meet the European Union's Renewable Energy Directive (RED) requirement of 10 per cent renewable transport fuels by energy by 2020, as existing blending policies may be insufficient.
- The study analyzes the costs associated with raising the 2011/12 blending mandate of 4 or 5 per cent to 10 or 15 per cent, specifically looking at government agency costs for the Renewable Transport Fuel Obligation (RTFO), agricultural subsidies via the CAPs Single Payment Scheme, and the impact of potential tax exemptions.
- The research investigates downstream economic and technical impacts, including fuel retailer handling expenses, increased consumer prices due to the higher cost of biofuels compared to fossil fuels, and potential engine damage from blended fuels.
Cite the original document
- APA
- Charles,, P. W. (2012). Biofuels - At What Cost? International Institute for Sustainable Development. https://www.iisd.org/publications/report/biofuels-what-cost-mandating-ethanol-and-biodiesel-consumption-united-kingdom
- Chicago
- Charles,, Peter Wooders,Chris. Biofuels - At What Cost? International Institute for Sustainable Development, 2012. https://www.iisd.org/publications/report/biofuels-what-cost-mandating-ethanol-and-biodiesel-consumption-united-kingdom.
- Wikipedia
- {{cite report |last1=Charles, |first1=Peter Wooders,Chris |title=Biofuels - At What Cost? |publisher=International Institute for Sustainable Development |date=3 February 2012 |url=https://www.iisd.org/publications/report/biofuels-what-cost-mandating-ethanol-and-biodiesel-consumption-united-kingdom |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{charles2012biofuels, author = {Charles,, Peter Wooders,Chris}, title = {{Biofuels - At What Cost?}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = feb, url = {https://www.iisd.org/publications/report/biofuels-what-cost-mandating-ethanol-and-biodiesel-consumption-united-kingdom}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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