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Issue № 78. February 2020

State Policy for Transport Biofuel Industry Development in the European Union

Maksim S. Golovin, Olga V. Kudryavtseva

Maksim S. Golovin — postgraduate student, Faculty of Economics, Department of Agricultural Economics, Lomonosov Moscow State University, Moscow, Russian Federation.

Olga V. Kudryavtseva — DSc (Economics), Professor, Faculty of Economics, Department of Environmental Economics, Lomonosov Moscow State University, Moscow, Russian Federation.

The relevance of biofuel industry study is determined by increasing attention to the growing trend of greenhouse gas emissions, primarily carbon dioxide, and its relationship with the exacerbation of global warming and climate change problem. Developed counties have been implementing state programmes aimed at creating low-carbon economy for several decades. The most successful countries in this area are the EU countries.
Using a system analysis, the authors examine the tools of state regulation of transport biofuels production and consumption in the EU, highlight the main tools and note the absence of such analogues in the Russian Federation. The research shows complexity and diversity of economic effects that arise in close spheres as a result of biofuel development. The positive results are reducing of greenhouse gas emission by transport sector, diversification of energy supply, agricultural sector and wastes utilization developing. The negative results are negative effects in the structure of land-use, i.e. conversion of natural ecosystems to agricultural goals, growth of human influence on the environment.
The results of the economic and mathematical assessment of introducing a mandatory norm for the volume of biofuel in fuel mixtures in the Russian Federation indicate positive economic effects, which include a reduction in carbon dioxide emissions in the field of road transport. Moreover, it is noted that in the midterm biofuel development is limited without system state policy. The main constraining factors are that Russia has enough traditional energy recourses, greenhouse gas emission policy isn’t sufficiently developed, production of transport biofuel is much more expensive than petrol and diesel.


Transport biofuels, energy, biofuels, alternative energy, government regulation of the energy sector.

DOI: 10.24411/2070-1381-2020-10034

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