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The role of CAFE standards and alternative-fuel vehicle production credits in U.S. biofuels markets

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  • Whistance, Jarrett
  • Thompson, Wyatt

Abstract

This paper investigates the impact of CAFE standards and alternative-fuel vehicle production incentives on the biofuel market and mandate, in particular. The study develops a structural model of the domestic light-duty vehicle sector, as well as reduced-form versions of domestic gasoline, diesel, and biofuel markets. The results suggest that holding CAFE standards at the 2010 level could facilitate U.S. ethanol market expansion, making it easier to meet the mandate. Alternative-fuel vehicle production incentives appear to have small effects. However, there is uncertainty about the level of automaker response to those incentives, and analysis indicates the model is fairly sensitive to the assumed level of response.

Suggested Citation

  • Whistance, Jarrett & Thompson, Wyatt, 2014. "The role of CAFE standards and alternative-fuel vehicle production credits in U.S. biofuels markets," Energy Policy, Elsevier, vol. 74(C), pages 147-157.
    • Handle: RePEc:eee:enepol:v:74:y:2014:i:c:p:147-157
    DOI: 10.1016/j.enpol.2014.09.004
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    References listed on IDEAS

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    Cited by:

    1. Jenn, Alan & Azevedo, Inês & Michalek, Jeremy Joseph, 2019. "Alternative-Fuel-Vehicle Policy Interactions Increase U.S. Greenhouse Gas Emissions," OSF Preprints n69tp, Center for Open Science.
    2. Galvin, Ray, 2016. "Rebound effects from speed and acceleration in electric and internal combustion engine cars: An empirical and conceptual investigation," Applied Energy, Elsevier, vol. 172(C), pages 207-216.
    3. Christensen, Adam & Hobbs, Benjamin, 2016. "A model of state and federal biofuel policy: Feasibility assessment of the California Low Carbon Fuel Standard," Applied Energy, Elsevier, vol. 169(C), pages 799-812.
    4. Christensen, Adam & Siddiqui, Sauleh, 2015. "Fuel price impacts and compliance costs associated with the Renewable Fuel Standard (RFS)," Energy Policy, Elsevier, vol. 86(C), pages 614-624.
    5. Bhardwaj, Chandan & Axsen, Jonn & Kern, Florian & McCollum, David, 2020. "Why have multiple climate policies for light-duty vehicles? Policy mix rationales, interactions and research gaps," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 309-326.
    6. Whistance, Jarrett & Thompson, Wyatt & Meyer, Seth, 2017. "Interactions between California's Low Carbon Fuel Standard and the National Renewable Fuel Standard," Energy Policy, Elsevier, vol. 101(C), pages 447-455.

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