Meeting the Mandate for Biofuels: Implications for Land Use and Food and Fuel Prices

  • Chen X
  • Huang H
  • Khanna M
 et al. 
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Abstract

Biofuels have been promoted to achieve energy security and as a solution
to mitigating climate change. This research presents a framework
to examine the extent to which biofuel mandates and subsidies reduce
gasoline consumption and their implications for the food and fuel
prices. A dynamic, multi-market equilibrium model, Biofuel and Environmental
Policy Analysis Model (BEPAM), is used to estimate the effects of
these policies on cropland usage between food crops and fuel crops
and food and fuel prices, and to analyze the incentives provided
by alternative policies for the mix of biofuels from corn and various
cellulosic feedstocks that are economically viable over the 2007-2022
period. The provision of biofuel subsidies that accompany the mandate
under the Renewable Fuel Standard (RFS) is found to significantly
change this mix in favor of cellulosic biofuels produced from high
yielding grasses and reduce the adverse impact of the RFS alone on
food prices.

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Authors

  • X Chen

  • H Huang

  • M Khanna

  • H \\"Onal

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