Impact of biodiesel exports and imports on national economy of Latvia
2025
Mazure, Gunita | Hane, Tatjana | Cesnauska, Anita
This study examines the impact of biodiesel imports and exports in Latvia on the national economy, focusing also on the economic impact and role in the EU total market. Latvia faces significant challenges in the deployment of renewable energy sources, with only 1% of transport energy coming from renewable sources, compared to an EU average of 11%. This gap shows that Latvia urgently needs strategies to boost biodiesel production and usage. At the same time, the country is not making full use of its export opportunities, as biodiesel exports make up just 0.9% of the EU total. However, the impressive average annual growth rate of 8.8% from 2012 to 2023 suggests increasing opportunities in this sector. The study uses econometric methods, such as co-integration analysis and the Vector Error Correction Model (VECM), to investigate the short- and long-term interdependencies between biodiesel exports, imports, consumption and GDP. The Granger causality test shows that biodiesel exports play a key role in boosting Latvia’s GDP growth in the short term. In 2023, the sector contributed 1% to the country’s total merchandise exports, showing a clear positive link between export growth and GDP. The conclusions highlight the need to increase export capacity and sector efficiency to strengthen Latvia’s biodiesel sector, reduce dependence on fossil fuels and achieve the EU climate goals. Furthermore, the use of local resources, such as rapeseed oil, not only supports sustainable resource management but may also contribute to job creation, economic resilience and environmental benefits.
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Información bibliográfica
Editorial Latvia University of Life Sciences and Technologies
Este registro bibliográfico ha sido proporcionado por Fundamental Library of Latvia University of Life Sciences and Technologies