Abstract
The paper focuses on analysis of financial measures on promotion of biofuels production and consumption in the Czech Republic during the period of 1997 - 2003. The cost effectiveness analysis (CEA) is used to assess the amount of financial supports during this period.
The benefits (and criteria) for CEA are as following: the amount of RME produced in the Czech Republic, the amount of biodiesel consumed in the Czech Republic and a ratio of prices of biodiesel / diesel (excluded VAT). These three criteria are set to compare cost effectiveness of financial measures used during the analysed period.
We use a cost effectiveness frontier for each criterion. We show that years 2002 and 2003 seem to be the most cost effective under all three criteria.
There is a marked trend of increasing of cost effectiveness of financial measures for promotion of biofuels production and consumption in the Czech Republic during the last years.