Effects of Increased Biofuels on the U.S. Economy in 2022
AbstractAchieving greater energy security by reducing dependence on foreign petroleum is a goal of U.S. energy policy. The Energy Independence and Security Act of 2007 (EISA) calls for a Renewable Fuel Standard (RFS-2), which mandates that the United States increase the volume of biofuel that is blended into transportation fuel from 9 billion gallons in 2008 to 36 billion gallons by 2022. Long-term technological advances are needed to meet this mandate. This report examines how meeting the RFS-2 would affect various key components of the U.S. economy. If biofuel production advances with cost-reducing technology and petroleum prices continue to rise as projected, the RFS-2 could provide economywide benefits. However, the actual level of benefits (or costs) to the U.S. economy depends importantly on future oil prices and whether tax credits are retained in 2022. If oil prices stabilize or decline from current levels and tax credits are retained, then benefits to the economy would diminish.
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.
Bibliographic InfoPaper provided by United States Department of Agriculture, Economic Research Service in its series Economic Research Report with number 96758.
Date of creation: Oct 2010
Date of revision:
Contact details of provider:
Postal: 1400 Independence Ave.,SW, Mail Stop 1800, Washington, DC 20250-1800
Web page: http://www.ers.usda.gov/
More information through EDIRC
Bioenergy; economywide; ethanol; petroleum; trade; macroeconomic factors; RFS-2; Resource /Energy Economics and Policy;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-12-04 (Agricultural Economics)
- NEP-ALL-2010-12-04 (All new papers)
- NEP-ENE-2010-12-04 (Energy Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ian Sheldon & Matthew Roberts, 2008. "U.S. Comparative Advantage in Bioenergy: A Heckscher-Ohlin-Ricardian Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1233-1238.
- Harry de Gorter & David R. Just, 2010. "The Social Costs and Benefits of Biofuels: The Intersection of Environmental, Energy and Agricultural Policy," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(1), pages 4-32.
- Torre Ugarte, Daniel de la & Walsh, Marie E. & Shapouri, Hosein & Slinsky, Stephen P., 2003. "The Economic Impacts of Bioenergy Crop Production on U.S. Crop Production," Agricultural Economics Reports 33997, United States Department of Agriculture, Economic Research Service.
- Mitchell, Paul D., 2011. "Economic Assessment of the Benefits of Chloro-s-triazine Herbicides to U.S. Corn, Sorghum, and Sugarcane Producers," Staff Paper Series 564, University of Wisconsin, Agricultural and Applied Economics.
- Nicole Condon & Heather Klemick & Ann Wolverton, 2013.
"Impacts of Ethanol Policy on Corn Prices: A Review and Meta-Analysis of Recent Evidence,"
NCEE Working Paper Series
201305, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Oct 2013.
- Condon, Nicole & Klemick, Heather & Wolverton, Ann, 2013. "Impacts of Ethanol Policy on Corn Prices: A Review and Meta-Analysis of Recent Evidence," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149940, Agricultural and Applied Economics Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.