Modelling Production Cost Scenarios for Biofuels and Fossil Fuels in Europe
35 Pages Posted: 10 Oct 2013
Date Written: September 15, 2013
This paper presents the results of a calculation model for biofuel production costs in 2015 and 2020 based on raw material price projections and considering scale and learning effects. Distinguishing six types of biofuels, the paper finds that scale economies and learning effects are critical for 2nd generation biofuels to become competitive. In case these effects can be utilized, cost saving potentials for 2nd generation biofuels are significant.
Keywords: Biofuels, Production Cost Scenarios, Raw Material Price Projection, Conversion Costs
JEL Classification: L25, L26, J24
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