From a rise in B to a fall in C? SVAR analysis of environmental impact of biofuels

Arbeitspapier

This is the first paper that econometrically estimates the impact of rising Bioenergy production on global CO2 emissions. We apply a structural vector autoregression (SVAR) approach to time series from 1961 to 2009 with annual observation for the world biofuel production and global CO2 emissions. We find that in the medium- to long-run biofuels significantly reduce global CO2 emissions: the CO2 emission elasticities with respect to biofuels range between -0.57 and -0.80. In the short-run, however, biofuels may increase CO2 emissions temporarily. Our findings complement those of life-cycle assessment and simulation models. However, by employing a more holistic approach and obtaining more robust estimates of environmental impact of biofuels, our results are particularly valuable for policy makers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: LICOS Discussion Paper ; No. 371

Classification and Topics

• Classification: Wirtschaft ; Semiparametric and Nonparametric Methods: General ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes ; Model Construction and Estimation ; Computable and Other Applied General Equilibrium Models ; Agriculture: Aggregate Supply and Demand Analysis; Prices ; Agricultural Markets and Marketing; Cooperatives; Agribusiness ; Alternative Energy Sources ; Mathematical Methods
• Subject: SVAR ; time-series econometrics ; biofuels ; environment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ciaian, Pavel ; Kancs, d'Artis ; Pirolix, Giuseppe ; Rajcaniova, Miroslava
• Event: Veröffentlichung
• (who): Katholieke Universiteit Leuven, LICOS Centre for Institutions and Economic Performance
• (where): Leuven
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/126504
• Last update: 10.03.2025, 11:44 AM CET