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The Implications of Alternative Biofuel Policies on Carbon Leakage AgEcon
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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The Implications of Alternative Biofuel Policies on Carbon Leakage AgEcon
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
Registros recuperados: 2
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