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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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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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