Tax Exemption for Biofuels in Germany
Is Bio-Ethanol Really an Option for Climate Policy?
This paper analyzes the role of bio-ethanol as a substitute for gasoline in Germany. The authors discuss the basic conditions that provide the setting for the production and promotion of biofuels and show that the production is not competitive. They stress that a possible increased use of bio-ethanol is inefficient and that there are preferred alternative strategies to reduce greenhouse gas emissions.
© 2003 Kiel Institute for the World Economy
Jan M Henke, Gernot Klepper, Norbert Schmitz