Integrating Biofuels into the DART Model

Biofuels and other forms of bioenergy have received increased attention in recent times:

They have partly been acclaimed as an instrument to contribute to rural development, energy security

and to fight global warming but have been increasingly come under attack for their potential to

contribute to rising food prices. It has thus become clear that bioenergy cannot be evaluated

independently of the rest of the economy and that national and international feedback effects are

important. In this paper we describe how the CGE model DART is extended to include first-generation

biofuel production technologies. DART can now be used to assess the efficiency of combined climate

and bioenergy policies. As a first example the effects of a 10% biofuel target in the EU are analyzed.

Kiel Institute Expert