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The Implications of Alternative U.S. Domestic and Trade Policies for Biofuels 31
Yano, Yuki; Blandford, David; Surry, Yves R..
The U.S. Renewable Fuel Standard program (RFS), which involves mandates for various biofuels, is complex and has been often misinterpreted or oversimplified in previous studies. In this paper we analyze the implications of the RFS for the U.S. domestic and international ethanol markets. We demonstrate the vital role of the advanced biofuel mandate within the RFS. Impacts of changes in tariffs on imported fuel ethanol and subsidies for U.S. domestic ethanol production are examined. One of our important findings is that the RFS could result in serious misallocation of resources in both a national and international context. There is a possibility that the United States could be required to import sugarcane-based ethanol to meet the advanced biofuel mandate,...
Tipo: Conference Paper or Presentation Palavras-chave: Ethanol; Trade liberalization; Renewable Fuel Standard; Mandate; Subsidies; Industrial Organization; F13; Q18; Q42; Q48.
Ano: 2010 URL: http://purl.umn.edu/91832
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The Implications of Alternative Biofuel Policies on Carbon Leakage 31
Drabik, Dusan; de Gorter, Harry; Just, David R..
We show how leakage differs, depending on the biofuel policy and market conditions. Carbon leakage is shown to have two components: a market leakage effect and an emissions savings effect. We also distinguish domestic and international leakage and show how omitting the former like the IPCC does can bias leakage estimates. International leakage is always positive, but domestic leakage can be negative. The magnitude of market leakage depends on the domestic and foreign gasoline supply and fuel demand elasticities, and on consumption and production shares of world oil markets for the country introducing the biofuel policy. Being a small country in world oil markets does not automatically imply that leakage is 100 percent or above that of a large country. We...
Tipo: Conference Paper or Presentation Palavras-chave: Biofuels; Market leakage; Carbon leakage; Emissions savings; Domestic leakage; Tax credit; Mandate; Environmental Economics and Policy; Q27; Q41; Q42; Q54.
Ano: 2010 URL: http://purl.umn.edu/102689
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Is the U.S. Import Tariff on Brazilian Ethanol Justifiable? 31
Devadoss, Stephen; Kuffel, Martin.
The United States has used tax credits and mandates to promote ethanol production. To offset the tax credits received by imported ethanol, the United States instituted an import tariff. This study provides insights about the quantitative nature of a U.S. trade policy that would establish a free-market price for ethanol, given the U.S. ethanol mandate and tax credit. The theoretical results from a horizontally related ethanol-gasoline partial equilibrium model show that the United States should provide an import subsidy rather than impose a tariff. The empirical results quantify that this import subsidy is 9 cents, instead of a 57 cent import tariff, per gallon of ethanol.
Tipo: Journal Article Palavras-chave: Ethanol imports; Mandate; Subsidy; Tariff; Tax credit; International Relations/Trade; Resource /Energy Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/99107
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The Implications of Alternative Biofuel Policies on Carbon Leakage 31
Drabik, Dusan; de Gorter, Harry; Just, David R..
We show carbon leakage depends on the type of biofuel policy (tax credit versus mandate), the domestic and foreign gasoline supply and fuel demand elasticities, and on consumption and production shares of world oil markets for the country introducing the biofuel policy. The components of carbon leakage – market leakage and emissions savings – are counteracting: carbon leakage increases with market leakage but decreases with emissions savings. We also distinguish domestic and international leakage where the latter is always positive, but domestic leakage can be negative with a mandate. The IPCC definition of leakage omits domestic leakage, resulting in biased estimates. Leakage with a tax credit always exceeds that of a mandate, while the combination of a...
Tipo: Conference Paper or Presentation Palavras-chave: Biofuels; Tax credit; Mandate; Market leakage; Carbon leakage; Emissions savings; Domestic leakage; Resource /Energy Economics and Policy; Q27; Q41; Q42; Q54.
Ano: 2011 URL: http://purl.umn.edu/114432
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Ethanol Trade between Brazil and the United States 31
Devadoss, Stephen; Kuffel, Martin.
The United States has used tax credit and mandate to promote ethanol production. To offset the tax credit availed by the imported ethanol, the United States instituted an import tariff. This study ascertains the appropriate U.S. ethanol import tariff corresponding to the U.S. domestic policies by setting the policy-induced ethanol price equal to the free market price. The theoretical results from a horizontally-related ethanol-gasoline partial equilibrium model of three countries (the United States, Brazil, and the Rest of the World) show that the United States should provide an import subsidy rather than impose a tariff. The empirical results quantify that this import subsidy is $0.10, instead of a $0.57 import tariff, per gallon of ethanol.
Tipo: Conference Paper or Presentation Palavras-chave: Ethanol imports; Mandate; Subsidy; Tariff; Tax credit; International Relations/Trade; F13.
Ano: 2010 URL: http://purl.umn.edu/60889
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