Impact of carbon emission trading on the European Union biodiesel feedstock market

The last decade has witnessed a significant growth in biodiesel production in order to mitigate the adverse impact of CO2 emissions. Given that the EU biodiesel is mainly produced from rapeseed oil, higher carbon taxes are likely to raise the production of biodiesel which, in turn, increase the prices of this important edible oil. Nevertheless, the association between the EU emission trading scheme and the biodiesel market remains understudied....