The persistency of EU policies supporting first generation biofuels despite the clearly
emerging picture of ecological benefits of this policy being small or even negative, leads to
the conclusion that this policy is driven by other objectives such as its distributional effects.
Against this background, the main objective of this article is to analyse income effects of an
abolishment of biofuel policies at a disaggregated level for the German agricultural sector.
Effects are estimated for different farm types and regions. Furthermore, differences between
farm net value added and family farm income are analysed and distributional effects are
estimated.
