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Baker, Mindy L.; Hayes, Dermot J.; Babcock, Bruce A.. |
A myriad of policy issues and questions revolve around understanding the bioeconomy. To gain insight, we develop a stochastic and dynamic general equilibrium model and capture the uncertain nature of key variables such as crude oil prices and commodity yields. We also incorporate acreage limitations on key feedstocks such as corn, soybeans, and switchgrass. We make standard assumptions that investors are rational and engage in biofuel production only if returns exceed what they can expect to earn from alternative investments. The Energy Independence and Security Act of 2007 mandates the use of 36 billion gallons of biofuels by 2022, with significant requirements for cellulosic biofuel and biodiesel production. We calculate the level of tax credits required... |
Tipo: Conference Paper or Presentation |
Palavras-chave: Crop Production/Industries; Resource /Energy Economics and Policy. |
Ano: 2008 |
URL: http://purl.umn.edu/6352 |
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