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The Impact of Trade Barriers on Mandated Biofuel Consumption in Canada

Author

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  • Danny G. Le Roy
  • Amani E. Elobeid
  • K. K. Klein

Abstract

In 2008 the Canadian government passed amendments to the Environmental Protection Act requiring five percent ethanol in transportation fuels sold in Canada by 2010 and two percent renewable content in diesel and heating fuels by 2012. Agricultural commodity and other groups have lobbied for further marketplace intervention that would ensure the biofuel needed to meet the legislated requirement be produced from domestic sources. Indeed, many of these special interests would like the biofuels content increased from five to ten percent and for the increase to be met by domestic firms only. The objective of this study is to compare the relative economic impacts in Canada of achieving a ten percent biofuel content either through increased imports or by substituting domestic production in place of increased imports.
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Suggested Citation

  • Danny G. Le Roy & Amani E. Elobeid & K. K. Klein, 2011. "The Impact of Trade Barriers on Mandated Biofuel Consumption in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 59(4), pages 457-474, December.
  • Handle: RePEc:bla:canjag:v:59:y:2011:i:4:p:457-474
    DOI: j.1744-7976.2011.01223.x
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    File URL: http://hdl.handle.net/10.1111/j.1744-7976.2011.01223.x
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    References listed on IDEAS

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    1. Amani Elobeid & Simla Tokgoz, 2006. "Removal of U.S. Ethanol Domestic and Trade Distortions: Impact on U.S. and Brazilian Ethanol Markets," Center for Agricultural and Rural Development (CARD) Publications 06-wp427, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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    1. repec:wsi:ccexxx:v:03:y:2012:i:03:n:s2010007812500145 is not listed on IDEAS
    2. Li, Xue & Mupondwa, Edmund & Panigrahi, Satya & Tabil, Lope & Sokhansanj, Shahab & Stumborg, Mark, 2012. "A review of agricultural crop residue supply in Canada for cellulosic ethanol production," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2954-2965.
    3. Jussila Hammes , Johanna, 2014. "A biofuel mandate and a low carbon fuel standard with ‘double counting’," Working papers in Transport Economics 2014:19, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    4. Robert Ackrill & Adrian Kay, 2010. "WTO Regulations and Bioenergy Sustainability Certification – Synergies and Possible Conflicts," Working Papers 2010/9, Nottingham Trent University, Nottingham Business School, Economics Division.

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