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Biogas production - the current alternative crop of choice

Manfred Schöpe
ifo Institut für Wirtschaftsforschung, München, 2006

ifo Schnelldienst, 2006, 59, Nr. 13, 21-26

Politicians and business leaders want to decrease the strong dependence on fossil energy sources and encourage the use of renewable energy. A key role here is for renewable raw materials. According to the EU Biofuel Directive the share of biofuel is to be increased to 5.7% by 2010. According to the EU biomass plan, the use of biomass as an energy source should double the level of 2005 by 2010, or an increase of 8%. Support measures of the federal government and the EU and also the German Länder have encouraged farmers and businesses to create completely new value-added chains extending from agricultural producers down to the consumer. Considerable efforts have been and will be taken to optimise procedures and to make technology ready for mass production in economically profitable amounts; considerable investments have been and will be made. Agriculture will profit from this development by gaining new markets for their products (rape seed for biodiesel, grain for bioethanol) or by completely new commercial activities, as is the case in the use of biomass.

JEL Classification: Q200

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ifo Institut für Wirtschaftsforschung, München, 2006