The French biodiesel support policy: a computable general equilibrium approach.

Summary The objective of this thesis is to develop a computable general equilibrium model adapted to the analysis of the biodiesel support policy in France. The French government has recently decided to remove the partial exemption of TICPE which was until now the main support to first generation biofuels. This measure could jeopardize the future of this sector in the absence of a new incentive system. Our model aims to measure the consequences of this regulatory change on the different economic activities and to evaluate the impacts of an alternative support system for biodiesel based on an increase in the tax on diesel. The study takes into account the contribution of oil price fluctuations to this objective. The social accounting matrix used as an empirical basis for the model is based on the reference year 2009. It includes 3 factors of production, and 17 goods and sectors of activity. The disaggregation of the agricultural and agri-food sectors shows the biodiesel production chain in detail. The model also incorporates specifications to represent the role of biodiesel co-products and land use changes. The results of the simulations suggest that the 10% incorporation target by 2020 required by the 2009 European directive could be met by raising the TICPE on diesel fuel to a level comparable to that of gasoline. However, the recessionary effects observed on a number of variables suggest that the appropriateness of adopting such a measure should be tempered.