Development of the market of solid biofuel in Ukraine under current conditions

Economic Annals-ХХI: Volume 159, Issue 5-6, Pages: 93-96

Citation information:
Popadynets, N., & Maksymiv, Yu. (2016). Development of the market of solid biofuel in Ukraine under current conditions. Economic Annals-XXI, 159(5-6), 93-96. doi: https://doi.org/10.21003/ea.V159-20

Nazariy Popadynets
PhD (Economics),
State Institution Institute of Regional Research named after M. I. Dolishniy of the
National Academy of Sciences of Ukraine
4 Kozelnytska Str., Lviv, 79026, Ukraine
popadynets.n@gmail.com

Yulia Maksymiv
PhD (Economics),
Vasyl Stefanyk Precarpathian National University
57 Shevchenko Str., Ivano-Frankivsk, 76018, Ukraine
J.Maksumiv@gmail.com

Development of the market of solid biofuel in Ukraine under current conditions

Abstract. Introduction. In terms of constant aggravation of the situation between Ukraine and Russia which threatens the Ukraine’s energy security, orientation of the domestic production of solid biofuel made from wood biomass and agricultural raw materials (both wastes and deliberately grown raw materials) towards foreign markets and the baseless growth of prices for fuel and energy resources, the necessity to develop the domestic market of solid biofuel as a factor of strengthening of the country’s energy security and helping to develop alternative energy sources is an urgent matter. Purpose. The article aims to research modern tendencies and define priority directions of solid biofuel market development as a factor that will have a positive impact on strengthening of energy and economic components of the national security of Ukraine. Methods. In order to conduct the present research, the authors used data of the State Statistical Office of Ukraine, materials of official web-portals and works of domestic and foreign scientists. The methods of generalisation and comparison to assess conditions of the development of Ukraine’s market of solid biofuel, the economic and statistical method to research dynamic changes in the market; the logical method to plan the development of the domestic market of solid biofuel as a factor of strengthening of energy security in Ukraine were used in this article. Results. The market of solid biofuel has been analysed by commodity groups of solid biofuel made from wood biomass and agricultural raw products, as well as by consumption of the relevant products by households and enterprises. The authors have determined the export share of wood fuel briquettes and pellets and outlined their distribution between the major exporting countries. Measures related to the state policy of incentives which will help to increase both the available capacity of woodworking and agricultural enterprises in production of solid biofuel and the demand on this production among consumers (both individuals and legal entities) have been suggested. Conclusion. The fact that the development of the domestic market of solid biofuel is essential for strengthening energy independence and the country’s economy has been proved. It is necessary to promote domestic production of solid biofuel made from wood biomass and agricultural raw materials aimed at the development of the domestic market.

Keywords: Alternative Energy Sources; Domestic Market; Solid Biofuel; Briquettes; Pellets; Energy Security; Power Supply

JEL Classіfіcatіon: H56

DOI: https://doi.org/10.21003/ea.V159-20

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Received 27.04.2016