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A Brief Analysis Of Biodiesel And Biofuels Economics Essay
Getting energy from alternative sources is for EU Member including Romania, a fundamental objective intended for reducing dependence from traditional energy sources in the context of increasing degree of instability oil and gas classical suppliers. In this context, the integration into Community Economic Area requires specific objectives in this respect from Romania in order to achieve the 20-20-20 Plan. This paper makes a brief analysis of economic and social implications of bioenergy production as it has, particularly that of biodiesel on the European economy in general and on the Romanian, especially.
Key words: biofuels, biodiesel, bioethanol, energy policy, Community space
JEL Classification: Q42, Q57
The diversity of approaches concerning the role and the place of renewable energies in the context of ensuring economy, requires analyzing issues from a triple perspective: efficiency (both economic and social and ecological), environmental impact and not least, sustainability. Energy by its nature is a factor in the evolution of any economy, a printing speed of the need to identify new and safe sources sustainable at the same time. The use of biofuel in the economy shows an accelerating effect of economic activities for developing new technologies through investment, which bring about jobs and budgetary financial resources for sustainable development of the entire economy especially. The impact on the economy developed and on the environment as well is significant. The production biofuels encourages the orientation towards the fund research and development activities, which are capable to bring high crude added to any economy. Although these effects previously stated function as economic multipliers, the issue of biofuels should be understood in its fullness and not just in this context, favorable to those developed economies. The observance of the principles of sustainable human development presumes some approaches oriented towards the gratification of the needs of a society in continuous diversification of social needs which must be fulfilled. Being in constant need of resources, energy is no exception to the law of scarcity of resources, if it is seen and understood as a resource in a modern sense.
The production of biofuel, biodiesel and bioethanol in particular was developed to reduce dependence on traditional energy sources, with a growing wall of instability. Thus “once the oil began to require that the main energy source in the early twentieth century, covered the production consumption worldwide, regardless of its growth rate. Even during the oil crisis it was not about chronic failure but deliberate reduction of production and limit access to oil. It is true, those moments reminded the world that sooner or later oil will run out, bringing into question the correlation between oil and development.” 
The developementof the alternative energy sources including the diversification of the renewable policy involves building a sustainable, fully geared to meet both the requirements and standards of environmental and ecological efficiency, but most importantly, meet the criteria of social efficiency. Framing energy policy in the production of biodiesel to the general objectives of socio-economic policy must materialize steps to sustainability of production through the reallocation of surplus resources to this area only in terms of ensuring food safety. Therefore it is considered that ”advertising of the renewable energies is a matter related to the potential of each country. Currently, carbon dioxide emissions in acceding and candidate countries are not considered alarming. Therefore, it should not be considered necessary an aggressive policy to promote renewables in this group, mainly because investment efforts on upgrading conventional power plants can lead to keeping the same structure of energy production for the next 30 years  ”. Making a production of biodiesel without the regard to conditions specific national cultural model can not produce positive effects on the economy just an inefficient relocation of production capital. From this perspective it is necessary to analyze the effectiveness of adopting these solutions as well aa the implications they have on the environment or cultural model of production structure. The changes over the years to model consumer enrgetic made more necessary the reorientation of states towards new energy sources that can contribute to reducing dependence on conventional resources. As shown in a document of European Commission “The EU currently imports 53% of primary energy they consume. Import dependence is 40% for solid fuels, 56% for gas and oil 82% (2005 figures). Baseline Commission updated in 2007, projected for 2030 a total rate of 67% import dependency. Under the second strategic energy review is expected that in 2020 imports of fossil fuels to maintain approximately the current level once the EU policies on climate and energy will be fully implemented”. 
Multitude of steps envisaged to reduce the effects of energy dependence on classical sources led to development of technologies used in production of biofuels, their widespread use in transportation by promoting the establishment obligativity 10% share in the fuel additive or classic fiscal measures aimed at exemption from excise duty on such products.  Production of biofuels is considered being in close relation to the energy sector. “However the option for producing biofuels and especially resources used in their production, have been analyzed more in terms of environmental impact and society, that in terms of economic efficiency. If to the latter we add effects on the agrifood sector, the shift in the energy production, biofuel production decision is becoming increasingly tough. So, according to a study by the Joint Research Centre European Commission, concerning the use of biomass in power generation and road fuel modern biomass energy plants are almost as efficient as plants operating with fossil fuels, so to produce heat and electricity, a megajoule (MJ) of biomass replaced approximately 0.95 MJ of fossil energy. The energy efficiency to convert biomass into liquid fuels for transportation usually ranges from only 30-40%. 1 MJ of biomass replaced as only approximately from 0.35 to 0.45 MJ oil transport”  . From this perspective the production of biofuels using biomass is economically inefficient, but its effects on the environment (ecological efficiency) recorded a positive aspect. Placed as the confluence of economic efficiency - environmental effectiveness, biofuels must cut into their favor positive effects. Not always the analysis in terms of production cost and profit earned should be a priority. Positive effects should be considered as a whole and not just those that express themselves financially. In this context recorded progress is important in the use of biofuels in the EU 2003-2005. (See Table 1)
Source: European Commission progress report on the use of biofuels and other renewable fuels in the EU Member States, COM (2006) 845 final and national reports under the biofuels directive
Promoting production and the use of biofuels in the EU economic space was based on a focused policy of increasing substitution of fuel and energy resources generally in the context of reducing dependence on conventional energy resources, mostly imported of geopolitical space with high risk of instability. That trend is reflected in the use of biofuels policies and national efforts in the field, but also draw a Community target through a national regulatory and legal oblicatorie.
According to data presented in Table 1, if biofuels in 2003 held the 0.5% weighting in use at EU level, two years later, doubled (1%) due to measures taken at Community space, you should see an increase 50% each year in the period under review, reaching as in 2005 to 1.4%.
Thus early described interval biocumbustibililor use more of a disbelief in promoting them as secure fuel sources and fuel substitution in classics, only some states inrgestirau trust them were Czech Republic (1.09%), Sweden (1.32%), France (0.67%),and Italy (0.50%). In this context Germany confirm status of a country that promotes biofuels (especially biodiesel) as an alternative source of fuel substitution and classical. Thus, in Chart No. 1 is presented the evolution of national indicative targets for the share of biofuels, 2006-2010.
Evolution of national indicative targets for biofuel share, 2006-2010
Source: Own processing based on COM (2006) 845 end database and Eurostat, 2010, available at , accesed on: 02/12/2010
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