Renewable Identification Numbers are the Tracking Instrument and Bellwether of US Biofuel Mandates
AbstractUS energy policy mandates minimum levels of biofuel use. The four interdependent mandates of the 2007 legislation - EISA - are defined by their feedstocks and greenhouse gas reduction targets, and are each set to rise over the coming years. If the volumes of use would be below the mandated amount, due perhaps to a low petroleum price or some other circumstance, then the mandate becomes binding. It forces fuel blenders to bid higher the price at which they buy biofuel and discount the price at which they sell biofuels. Conversely, if biofuel use would exceed the mandated volumes anyway, then this policy will not affect markets. Renewable Identification Numbers (RINs) are the traded instruments for implementing these mandates, and key indicators of the degree to which mandates affect biofuel markets, if at all. RIN values will rise if the mandate is binding, as fuel blenders scramble to get enough RINs to meet their mandates. A high RIN price signals that this policy affects biofuel markets, and consequently probably drives agricultural commodity prices higher. But the EISA gives considerable flexibility that will affect RIN values in practice, causing great uncertainty about how they will affect biofuel markets and, through them, agricultural commodity markets. Copyright (c) 2009 The Authors. Journal compilation (c) The Agricultural Ecomomics Society and the European Association of Agricultural Economists 2009.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by The Agricultural Economics Society in its journal EuroChoices.
Volume (Year): 8 (2009)
Issue (Month): 3 (December)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1478-0917
More information through EDIRC
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.