Assessment of the potential for a biofuels industry in Ukraine
-
DOIhttp://dx.doi.org/10.21511/ppm.16(4).2018.08
-
Article InfoVolume 16 2018, Issue #4, pp. 83-90
- Cited by
- 1649 Views
-
128 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Ukraine is the only major agricultural country whose production of biofuels has declined since 2010. Nevertheless, it has set a target of 11.5 percent of primary energy supply from biomass, biofuels and waste by 2035. Agricultural land needed to produce biofuels feedstock is calculated for two scenarios based on its current 11.5 percent target and previous 5.0 percent target specified as a share of transport energy consumption. The export orientation of Ukraine’s crop sector and resulting foreign currency earnings pose trade-offs if crops are diverted from exports to biofuel feedstocks. Given these trade-offs, policy options for developing a biofuels industry while satisfying Ukraine’s export and domestic markets are to (1) bring land not currently cultivated into production and (2) increase yield. Both options are found to have substantial potential.
- Keywords
-
JEL Classification (Paper profile tab)O32, Q16
-
References44
-
Tables6
-
Figures1
-
- Figure 1. Structure of world (a) and Ukraine (b) energy consumption by type, 2016
-
- Table 1. Biofuels production in the period 2010–2016 (thousand tons of oil equivalent)
- Table 2. Scenarios for biofuels share of Ukraine’s transport fuel consumption by 2035
- Table 3. Estimated hectares to meet Ukraine’s biofuel targets for transport fuels
- Table 4. Comparison of corn and wheat production and export, major producers, 1,000 metric tons, 2016–2017 market years
- Table 5. Yield of major crops for biofuels production, major agricultural producing or exporting countries, tons per hectare, 2012–2016 average
- Table 6. SWOT analysis of biofuels industry development in Ukraine
-
- Banse, M. F., Junker, A. G., Prins, E., Stehfest, A., Tabeau, G., Woltjer, & Meijl, H. Van (2014). Global impact of multinational biofuel mandates on land use, feedstock prices, international trade and land-use greenhouse gas emissions. Landbauforschung Volkenrode, 64(2), 59-72.
- Beckman, J. E., Gooch, Gopinath, M., & Landes, M. (2018). Market impacts of China and India meeting biofuel targets using traditional feedstocks. Biomass and Bioenergy, 108, 258-264.
- Beckman, J., & Nigatu, G. (2017). Global Ethanol Mandates: Opportunities for US Exports of Ethanol and DDGS. Electronic Outlook Report from the Economic Research Service (BIO-05).
- Bilotskiy, S. N., Danylova, O., Grinenko, O., Karmaza, O., & Koucherets, D. (2017). Legal and economic aspects of Ukrainian enterprises activity at the European renewable energy market. Investment Management and Financial Innovations, 14(2), 71-78.
- BP (2017). BP Statistical Review of World Energy.
- Cheteni, P. (2017). Sustainable development: biofuels in agriculture. Environmental Economics, 8(2), 83-91.
- Delzeit, R., Winkler, M., & Söder, M. (2018). Land Use Change under Biofuel Policies and a Tax on Meat and Dairy Products: Considering Complexity in Agricultural Production Chains Matters. Sustainability, 10(2), 419.
- Demirbas, A. (2009). Political, economic and environmental impacts of biofuels: A review. Applied energy, 86(1), 108-117.
- Directive 2009/28/EU of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (Text with EEA relevance) (n.d.).
- Dyachenko, Yu. A. (2018). World corn market and Ukraine’s place in it. Young Scientist, 2(54), 391-393.
- Elliott, K. A. (2017). Global Agriculture and the American Farmer: Opportunities for U.S. Leadership. Center for Global Development. Washington, DC.
- Energy Strategy of Ukraine for the period up to 2035 “Safety, Energy Efficiency, Competitiveness”. Order of the Cabinet of Ministers of Ukraine dated August 18, 2017 No. 605-p (n.d.).
- European Commission (2014). European Energy Security Strategy. Brussels, 28.5.2014. COM (2014) 330 final.
- EU-Ukraine Association Agreement (n.d.).
- Food and Agriculture Organization of the United Nations (n.d.). The official website.
- Geletukha, H., & Zheliezna, T. (2017). Status and prospects of bioenergy development in Ukraine. Industrial Heat Engineering, 2(39), 60-64.
- Gomiero, T. (2017). Large-scale biofuels production: a possible threat to soil conservation and environmental services. Applied Soil Ecology.
- Janda, K., & Stankus, E. (2017). Biofuels Markets and Policies in Ukraine.
- Kaletnik, H. (2018). Production and use of biofuels: second edition, supplemented: textbook (226 p.). Vinnytsia: LLC “Nilan-Ltd”.
- Kaletnik, H. M., Honcharuk, H., & Dovhan, Y. (2017). Investment and innovation support for the cultivation of bioenergy crops and the production of biofuels. Eсonomy. Finanсes. Management: actual issues of science and practical activity, 1, 7-18.
- Kaletnik, H., Skoruk, O., & Branitskyi, Y. (2017). Organizational and economic principles of biofuel production organization in Vinnytsia region on the basis of Uladovo-Lyulinets Experimental breeding station Eсonomy. Finanсes. Management: actual issues of science and practical activity, 5, 7-25.
- Kirieieva, E. A. (2016). Biofuels production: world experience and possibility for developing in Ukraine. Economy, finances, management topical issues of science and practical activity, 4, 7-14.
- Kornievsky, O. A., & Nechiporenko, V. O. (2017). Modern Challenges to Civil Society in Ukraine in Conditions of Political Instability. Strategic Panorama, 1, 61-66.
- Lupenko, Yu. O., & Mesel- Veseliak, V. Ia. (2012). Strategic directions of development of agriculture of Ukraine for the period till 2020. NNTs “IAE”.
- Maack, J. (2001). Scenario analysis: A tool for task managers (Social Development Paper No. 36). World Bank, Washington, DC.
- Medipally, S. R., Yusoff, F. Md., Banerjee, S., & Shariff, M. (2015). Microalgae as Sustainable Renewable Energy Feedstock for Biofuel Production. BioMed Research International, 2015, 513-519.
- Murphy, F., Devlin, G., Deverell, R., & McDonnell, K. (2013). Biofuel Production in Ireland − An Approach to 2020 Targets with a Focus on Algal Biomass. Energies, 6, 6391-6412.
- Polukhovich, V. I. (2016). The main directions of development of competition and antimonopoly regulation on the markets of fuel and energy complex of Ukraine. Private Law and Entrepreneurship, 16, 136-140.
- Razumkov Centre (2017). Energy sector of Ukraine: the results of 2016.
- Sereda, O. V., & Fedorus, L. A. (2016). Renewable energy as a promising direction for the sustainable development of rural areas. Economic Forum, 2, 145-151.
- Stafford, W., Lotter, A., Brent, A., & von Maltitz, G. (2017). Biofuels technology A look forward. UNU-WIDER.
- State Service of Ukraine on Geodesy, Cartography and Cadastre (n.d.). The official website.
- State Statistics Committee of Ukraine (n.d.). The official website.
- The National Security Strategy of Ukraine. Approved by the Decree of the President of Ukraine dated May 26, 2015, No. 287/2015 (n.d.).
- Transparency International. The global coalition against corruption (n.d.). The official website.
- United States Department of Agriculture (n.d.). The official website.
- United States Department of Agriculture Foreign Agricultural Service (2016). EU Biofuels Annual 2016.
- United States Department of Energy (n.d.). The official website.
- United States Energy Information Administration (n.d.). The official website.
- Vimmerstedt, L., Brian, J., Bush, W., Hsu, D. D., Inman, D., & Peterson, S. O. (2015). Maturation of biomass-to-biofuels conversion technology pathways for rapid expansion of biofuels production: a system dynamics perspective. Biofuels, Bioprod. Bioref, 9, 158- 176.
- WBA Global Bioenergy Statistics (2017, December 30).
- World Intellectual Property Organization (WIPO) (2017). The Global Innovation Index Report.
- Zilberman, D., Rajagopal, D., Sexton, S., Hochman, G., & Serra, T. (2011). The economics of biofuels, food, and the environment. In A. Schmitz, N. L. Wilson, Ch. B. Moss & D. Zilberman (Eds.), The Economics of Alternative Energy Sources and Globalization (pp. 24-34).
- Zulauf, C. (2017). Ukraine grain and oilseed production: assessing recent success to attain sustainable success. Economy. Finances. Management: topical issues of science and practice, 2, 7-14.