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Biofuels: At What Cost? Government Support for Ethanol and Biodiesel in the European Union

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Géraldine Kutas, Carina Lindberg, Ronald Steenblik
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According to this study, the cost of obtaining a unit of CO2-equivalent reduction through biofuel subsidies is high. Even under the best-case scenario assumptions for greenhouse gas emissions reductions from biofuels, governments could achieve far more reductions for the same amount of public funds by simply purchasing the reductions in the marketplace, according to the report.