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Abstract

To enhance the use of biofuels is stated priority of EU and German energy policy. Reasons given for this priority inter alia include positive income effects for the rural areas. This paper uses the example of North Rhine-Westphalia to investigate rural areas’ possibilities to profit from the added value of bio fuel production. It is shown that the main channel of income generation is based on stabilized demand for agricultural products. Taking into account recent policy shifts in Germany there remain few chances to participate in the added value of downstream production steps. In addition, due to considerable support for biogas plants maize production considerably reduces areas consecrated to bio fuel production.

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