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Towards a Genuine Sustainability Standard for Biofuel Production AgEcon
de Gorter, Harry; Tsur, Yacov.
Sustainability standards for biofuel production calculated via life cycle accounting (LCA) require a certain reduction in greenhouse gas (GHG) emissions relative to gasoline. Recently it has been shown that LCA gives biased results and should be extended to incorporate indirect land use change (iLUC). We show that even including iLUCs, LCA is still biased and distorted because it is based on GHG emission and uptake calculations, which assume economic values only if (i) the environmental price of carbon is constant over time and (ii) the social discount rate (SDR) equals zero. We offer a sustainability standard free of these restrictions, expressed in terms of a range of SDRs and a maximal GHG payback period. Applying our methodology to Brazilian and U.S....
Tipo: Working or Discussion Paper Palavras-chave: Sustainability; Biofuel Production; Environmental Economics and Policy; International Development; International Relations/Trade; Political Economy.
Ano: 2009 URL: http://purl.umn.edu/48927
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