An Economic Evaluation of US Biofuel Expansion Using the Biofuel Breakeven Program with GHG Accounting
AbstractWe present results from an application of the Biofuel Breakeven program (BioBreak) to 14 US cellulosic ethanol markets that vary by feedstock and location.� BioBreak estimates the economic costs of cellulosic biofuel production for each market and identifies the necessary conditions to sustain long-run markets.� Based on current market conditions, our results suggest that long-run cellulosic ethanol production is not sustainable without significant government intervention or high long-run oil prices ($135-$170 per barrel).� Using life-cycle analysis for cellulosic ethanol and conventional gasoline, we extend the BioBreak program results to derive an implicit value of reduced greenhouse gas emissions embodied in cellulosic ethanol.� For the markets considered in our analysis, sustaining cellulosic ethanol production is equivalent to valuing the reduction in CO2 equivalents between $141 and $282 per metric ton.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 36118.
Date of creation: 15 Apr 2013
Date of revision:
Publication status: Published in AgBioForum 2011, vol. 14 no. 3, pp. 111-119
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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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biofuel; Biofuel policies; biomass; carbon tax; cellulosic ethanol; Greenhouse gas emissions; life-cycle analysis; renewable fuel standard;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-04-27 (Agricultural Economics)
- NEP-ALL-2013-04-27 (All new papers)
- NEP-ENE-2013-04-27 (Energy Economics)
- NEP-ENV-2013-04-27 (Environmental Economics)
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- Rosburg, Alicia & Miranowski, John & Jacobs, Keri, 2013. "Cellulosic Biofuel Supply with Heterogeneous Biomass Suppliers: An Application to Switchgrass-based Ethanol," Staff General Research Papers 36359, Iowa State University, Department of Economics.
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