Drivers of liquid biofuel prices in poland

The general aim of the study was to determine the impact of legal regulations in force on the market of liquid biofuels and biocomponents in Poland on the prices of fatty acid methyl esters (so-called biodiesel or BIO100 biofuel). Therefore, we indicated the importance of legal regulations in shaping biodiesel prices in Poland based on empirical data from the period of 2008-2016 (the latest available data). An additional purpose was to assess the legal regulations as drivers of ecodiesel (diesel with an admixture of biodiesel) prices in Poland based on empirical data from the period 2004-2021. Institutional, legal and economic variables were distinguished, assuming that the biofuel market, like many other markets, is so heavily regulated that taking legal acts into consideration is crucial for its functioning. Multiple regression analysis was used. The sources of data were officially available databases (PKN Orlen Data, FRED Economic Research Data, as well as USD/PLN exchange rate quotations), while the sources of legal acts were the Journal of Laws of the Republic of Poland and the Official Journal of the European Union. The obtained results indicated that the prices of biofuels (specifically biodiesel) in Poland depend both on economic factors (the USD/PLN exchange rate and crude oil prices) and on some legal regulations, including domestic and EU regulations. We proved the importance of the EU directive 2003/30 on the promotion of the use of biofuels or other renewable fuels for transport, as well as acts on renewable energy sources (2015), on amending the act on liquid biocomponents and biofuels (2014) and on excise duty (2008).