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Renewable Natural Gas as a Solution to Climate Goals: Supply Estimates and Response to California’s Low Carbon Fuel Standard

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  • Scheitrum, Daniel P.
  • Parker, Nathan C.

Abstract

Natural gas is a growing portion of transportation fuel consumed in California. While, natural gas has a slight environmental benefit relative to the use of conventional liquid fuels such as gasoline and diesel, the environmental performance of natural gas can be greatly improved by procuring the gas from renewable sources. We estimate the supply curves of producing natural gas from four renewable sources: (1) dairy manure, (2) municipal solid waste, (3) wastewater treatment plants, and (4) landfill gas. We also evaluate how the production of RNG will respond to California's Low Carbon Fuel Policy (LCFS) and compare the welfare impacts of the LCFS policy to an equivalent carbon tax.

Suggested Citation

  • Scheitrum, Daniel P. & Parker, Nathan C., 2016. "Renewable Natural Gas as a Solution to Climate Goals: Supply Estimates and Response to California’s Low Carbon Fuel Standard," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235883, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235883
    DOI: 10.22004/ag.econ.235883
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    References listed on IDEAS

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    1. Arora, Vipin, 2014. "Estimates of the Price Elasticities of Natural Gas Supply and Demand in the United States," MPRA Paper 54232, University Library of Munich, Germany.
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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy; Livestock Production/Industries; Resource /Energy Economics and Policy;
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