Sugar beet for bioethanol production: An approach based on environmental agricultural outputs

The EU imports both bioethanol and the raw material needed to produce it. Thirty percent of bioethanol is produced from sugar beets in the EU. However, sugar beet cultivated area and yields have fallen due to the 2006 sugar regime reform. Given the potential uncertainty about the future for sugar beet farmers, biofuels may represent an alternative market. This paper analyses potential contribution to the efficiency, in terms of environmental output, of the sugar beet crop both when production is oriented toward bioethanol and regarding the use of input. An empirical application is performed in Spain by Data Envelopment Analysis (DEA). The results show that 4% of farms have full technical efficiency, while the rest have an average efficiency of 55.9%. The figures show that inputs can be reduced over 40%, and also show the low average level of input‐use efficiency. In addition, it cannot be said that there is a relationship between efficiency and farm scale. The consideration of aspects such as the environmental advantages of using sugar beet production for bioethanol can open new lines of action to support this crop in the EU. In addition, boosting sugar beet production may reduce potential dependency on importation.