Support to bioenergy and its impact on competitiveness of Latvian agribusiness
2014
Krievina, A., Latvian State Inst. of Agrarian Economics, Riga (Latvia) | Melece, L., Latvian State Inst. of Agrarian Economics, Riga (Latvia)
The paper deals with the analysis of bioenergy support instruments in Latvia, with an objective to evaluate the direct impact of the bioenergy support on energy costs and the overall competitive position of Latvian agribusiness. In Latvia, the generation support for electricity from biomass is provided as feed-in tariffs; biofuels are supported by mandatory blending requirement. The support has stimulated a rapid increase in the production of electricity from biogas and transport biofuels in Latvia. At the same time, energy support contributes to the larger share of energy costs and increases the total costs; though, the support alone does not explain a higher share of energy costs in Latvian agribusiness compared with other countries.
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