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Abstract

Although the importance of biofuels for energy safety and the combat against global warming is strongly debated in Europe, no one contests that they have a beneficial effect on European agriculture. We assess the impacts of full enforcement of the European Directive promoting these biofuels on the various European markets and on farm incomes. This assessment takes into account the possibilities of importing these products from the world market, as well as the induced effects on livestock. We show substantial effects on large crop markets and very little effects on cattle-breeding markets. Total farm income increases in relation to associated public expenditure, but in a limited way.

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