Deborah Bentivoglio

Integrated evaluation of biofuel production options in agriculture: an exploration of sustainable policy scenarios

This paper addresses the future potential of biofuel production in agriculture, with a particular view to its implementation in agriculture in Europe. After a brief account of recent developments, an exploratory meta-analysis is presented in order to assess the effectiveness of biofuel production from the perspective of several relevant policy criteria. Next, various scenarios are outlined and evaluated by means of a multi-criteria analysis, so as to judge the feasibility of various biofuel production options. The paper concludes with some policy lessons.

A Comparison Between Ethanol and Biodiesel Production: The Brazilian and European Experiences

Industrialized countries’ dependence on fossil fuels has been distressing for a long time for countries that do not have self-sufficiency, whether for environmental, economic, geopolitical, or other reasons. In this context, it is understood that the burning of fossil fuels contributes to greenhouse gas emissions (GHG) increasing the risk of intensifying climatic disturbances that can deteriorate the processes of production, consumption, and welfare in the world. Therefore, the development of alternative energy sources can provide solutions for the gaps, since reducing exposure to the vulnerability of supply and price volatility, environmental issues, and even the development of new investment opportunities in these countries. This is due to the possibility of developing innovations in the production and processing industry, which would contribute to the economic activity. Thus, increasing the use of bioenergy is one of the existing ways to reconcile the need to expand the supply of energy with the slowdown in global warming, i.e., the most important and disseminated use would be the biomass power generated by the consumption of biofuels, once it reduces GGE emissions.

European biodiesel market and rapeseed oil: what impact on agricultural food prices?

The last decade has seen a rapid increase in the production and consumption of biodiesel in the EU. This development has been especially stimulated by EU policy as a means to promote energy security and to reduce the emissions of greenhouse gases. However, in recent years, biodiesel production has been questioned due to the possible impact on food prices. This paper aims to explore the impact of EU biodiesel prices on diesel and rapeseed oil prices, using a Vector Error Corrections Model (VECM). Impulse response functions and forecast error variance decompositions are also computed in order to investigate the interrelationships within the relevant time series. Unlike the predominant literature, which mainly addresses the US and Brazilian ethanol sector, this paper focuses on the European biodiesel market. Our results suggest that biodiesel prices are mainly affected by feedstock prices, but there is no strong evidence that changes in biodiesel prices affect food prices.

Biofuel sustainability: review of implications for land use and food price

This article reviews the main findings, obtained from the literature, on two aspects that question first generation biofuel sustainability: the consequences of increased biofuel production on indirect land use change (ILUC) and related emissions and the impact of biodiesel on food-commodities prices. The measurement of ILUC, although necessary, is currently highly uncertain as demonstrated by the wide variation in estimates; in any case it seems that none of the first generation biofuels will be able to fulfill the sustainability criteria imposed by the RE Directive. Regarding the food-fuel debate, even if discrepancies in results have been observed, this review suggests that changes in biofuel prices have little impact on food prices. On the other hand, the impact of an increasing production of biofuel on food prices is not negligible.

GHG balance of biodiesel production and consumption in EU

The promotion of biofuels as energy for transportation in the industrialised countries is mainly driven by the perspective of oil depletion, concerns about energy security and global warming. Nevertheless, the production of biofuels entails emissions to the environment coming from the different stages in the product life cycle. This paper evaluates the environmental impact of pure rapeseed biodiesel (B100) production and consumption in the public transport sector, in terms of GHG emissions released by every stage in the life cycle, in order to identify proper interventions to reduce the emissions. The methodology applied to this purpose is an Attributional Life Cycle Analysis (ALCA). The Agricultural phase results to be the process that produces the highest GHG emissions, mainly because of the production and the use of nitrogen fertiliser.

What is behind the Italian coffee import? Investigating the most relevant dynamics

After the US and Germany, Italy is the third world’s largest importer of green coffee, above all from Brazil, Vietnam and India, being also the second roasted coffee producer, exporter and consumer in EU, after Germany. Given the importance of coffee import in Italy, this paper applies the gravity model to investigate the influence of the main variables affecting the Italian coffee import. In particular, the aim of this paper is to identify the most influent factors determining the level of import flows between Italy and its 11 main coffee export partners. Our results show that the exporters’ GDP, their coffee production, the distance between the Italian capital town and those of the other partners, and finally the continental territorial boundary affect the Italian coffee import, as well as the tradition to drink coffee and the consumers’ demand for quality.

Technological clusters as a hub for the innovation: from the theoretical model to an Italian regional case study in the agrifood sector

Innovations are necessary for growth and competitiveness. Although agrifood production represents a pillar of Italian economy, it suffers a low propensity towards innovation. In line with current EU policy strategies, the creation of regional clusters promotes the innovation in order to increase the competitiveness of companies. This work aims to investigate the needs for innovation among SMEs in Italy, through a survey conducted on a regional cluster in Marche Region. Findings show a clear propensity of companies to innovate, although they face some structural constraints. Improving quality in each step of the supply chain is found to be the most relevant demand for innovation, being a successful strategy both for companies to compete in the global market and for the regional development.

The Italian coffee import: a gravity model analysis

After the US and Germany, Italy is the third world’s largest importer of green coffee, above all from Brazil, Vietnam and India, being also the second roasted coffee producer, exporter and consumer in EU, after Germany. Given the importance of coffee import in Italy, this paper applies the gravity model to investigate the influence of the main variables affecting the Italian coffee import. In particular, the aim of this paper is to identify the most influent factors determining the level of import flows between Italy and its 11 main coffee export partners. Our results show that the exporters’ GDP, their coffee production, the distance between the Italian capital town and those of the other partners, and finally the continental territorial boundary affect the Italian coffee import, as well as the tradition to drink coffee and the consumers’ demand for quality.

Biofuel-food market interaction: exploring the price link in the European and Brazilian context

The last decade has seen a rapid increase in the production and consumption of biofuel at global level. Nowadays, world biofuel markets are dominated by ethanol (79%) and biodiesel (21%). The European Union is the leader in biodiesel production and consumption, while Brazil is the world’s biggest sugar producer and exporter, as well as the world’s largest producer and consumer of sugarcane ethanol as transportation fuel. However, first generation biofuels are questioned due to the possible link with food prices. This study contributes to this debate, investigating the relationship between the price of biofuels and related fuels and agricultural commodities in the European and Brazilian context. The problem has been addressed using a Vector Error Corrections Model. The results show that there are evidences of long-run equilibrium relation among the analyzed price series in both scenarios. In particular, EU biodiesel price is connected with feedstock price; while Brazilian ethanol price is connected to fuel price.

Feasibility of the income stabilization tool in Italy at regional level

European common agricultural policy (CAP) reforms, in the pillar 2, increase the importance of agricultural risk management as a means to stabilize farm household incomes. The one considered in this paper, the Income stabilization tool (IST), consists in providing co-financing support to mutual funds compensating farmers who experience a severe drop in their farm income. The strategic objective of the research is to analyse the potential of IST for the Marche Region in Italy. Income losses and consequent fundings are quantified elaborating individual farm data (FADN-RICA) in 2010. The results of the analysis show the relation between commodities price volatility and the increasing risk exposure. For public and private stakeholders analyses and reflections can be used in debating the domain of policy reforms, risk exposure and risk management in Italian agriculture.