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Are there Carbon Savings from US Biofuel Policies? Accounting for Leakage in Land and Fuel Markets AgEcon
Bento, Antonio M.; Klotz, Richard; Landry, Joel R..
This paper applies the insights of the carbon leakage literature to study the emissions consequences of biofuel policies. We develop a simple analytic framework to decompose the intended emissions impacts of biofuel policy from four sources of carbon leakage: domestic fuel markets, domestic land markets, world land markets and world crude oil markets. A numerical simulation model illustrates the magnitude of each source of leakage for combinations of two current US biofuel policies: the Volumetric Ethanol Excise Tax Credit (VEETC) and the Renewable Fuel Standard (RFS). In the presence of both land and fuel market leakage, current US biofuel policies are unlikely to reduce greenhouse gases. Four of the five policy scenarios we consider lead to increases in...
Tipo: Conference Paper or Presentation Palavras-chave: Multi-market; Carbon leakage; Biofuels; Greenhouse gases; Agricultural and Food Policy; Land Economics/Use; Resource /Energy Economics and Policy; Q42; Q54; Q58.
Ano: 2011 URL: http://purl.umn.edu/104008
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