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Which biofuel market does the ethanol tariff protect? Implications for social welfare and GHG emissions AgEcon
Crago, Christine Lasco; Khanna, Madhu.
The ethanol tariff is one of the instruments used by the government to encourage domestic ethanol production. Existing literature analyzing the market and welfare effects of the US ethanol tariff has concluded that removing the tariff would increase social surplus and reduce greenhouse gas (GHG) emissions, due to the replacement of corn ethanol with lower cost and lower GHG intensive sugarcane ethanol. This paper re-examines these findings in the presence of a domestic cellulosic ethanol industry. The current RFS mandate requires 21 billion gallons of advanced biofuel, a portion of which could be met by any non-starch based biofuel that reduces emissions by at least 50% compared to an energy equivalent amount of gasoline. Sugarcane ethanol has been...
Tipo: Conference Paper or Presentation Palavras-chave: Biofuel; Ethanol tariff; Fuel externalities; Agricultural and Food Policy; Resource /Energy Economics and Policy; Q17; Q18; Q42.
Ano: 2011 URL: http://purl.umn.edu/103784
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Competitiveness of Brazilian Sugarcane Ethanol Compared to US Corn Ethanol AgEcon
Crago, Christine Lasco; Khanna, Madhu; Barton, Jason; Giuliani, Eduardo; Amaral, Weber.
Corn ethanol produced in the US and sugarcane ethanol produced in Brazil are the world’s leading sources of biofuel. Current US biofuel policies create both incentives and constraints for the import of ethanol from Brazil, and together with the competitiveness and greenhouse gas intensity of sugarcane ethanol compared to corn ethanol will determine the extent of these imports. This study analyzes the supply-side determinants of this competitiveness and compares the greenhouse gas intensity of corn ethanol and sugarcane ethanol delivered to US ports. We find that while the cost of sugarcane ethanol production in Brazil is lower than that of corn ethanol in the US, the inclusion of transportation costs for the former and co-product credits for the latter...
Tipo: Conference Paper or Presentation Palavras-chave: Economic competitiveness; Renewable fuel standard; Ethanol trade policy; Agribusiness; Agricultural and Food Policy.
Ano: 2010 URL: http://purl.umn.edu/60895
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Carbon Abatement in the Fuel Market with Biofuels: Implications for Second-Best Policies AgEcon
Crago, Christine Lasco; Khanna, Madhu.
A carbon tax would penalize carbon intensive fuels like gasoline and shift fuel consumption to less carbon intensive alternatives like biofuels. Since biofuel production competes for land with agriculture, a carbon tax could raise land rents, divert land towards fuel production, and raise agricultural prices. This paper analyzes the welfare effect of a carbon tax on fuel with gasoline and biofuel as available fuel choices, in the presence of a labor tax and biofuel subsidy. The second-best optimal carbon tax is also quantified. Findings show that when biofuels is part of the fuel mix, the carbon tax has a commodity price effect which arises from tax-induced changes in land rent. The commodity price effect could exacerbate or attenuate the tax interaction...
Tipo: Conference Paper or Presentation Palavras-chave: Carbon tax; Optimal fuel tax; Biofuel; Environmental Economics and Policy; Q42; Q48; Q54; H23.
Ano: 2010 URL: http://purl.umn.edu/60894
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