NBER Working Papers and Publications
|January 2011||Meeting the Mandate for Biofuels: Implications for Land Use, Food and Fuel Prices|
with Haixiao Huang, Madhu Khanna, Hayri Önal: w16697
Biofuel production is being promoted through various policies such as mandates and tax credits. This paper uses a dynamic, spatial, multi-market equilibrium model, Biofuel and Environmental Policy Analysis Model (BEPAM), to estimate the effects of these policies on cropland allocation, food and fuel prices, and the mix of biofuels from corn and cellulosic feedstocks over the 2007-2022 period. We find that the biofuel mandate will increase corn price by 24%, reduce the price of gasoline by 8% in 2022, and increase social welfare by $122 B (0.7%) relative to Business As Usual scenario. The provision of volumetric tax credits that accompany the mandate significantly changes the mix of biofuels produced in favor of cellulosic biofuels and reduces the share of corn ethanol in the cumulative vol...
|Meeting the Mandate for Biofuels: Implications for Land Use, Food, and Fuel Prices|
with Haixiao Huang, Madhu Khanna, Hayri Önal
in The Intended and Unintended Effects of U.S. Agricultural and Biotechnology Policies, Joshua S. Graff Zivin and Jeffrey M. Perloff, editors