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Low carbon fuel standards: Implementation scenarios and challenges

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  • Yeh, Sonia
  • Sperling, Daniel

Abstract

Performance-based low carbon fuel standards (LCFS) of the type implemented in California and being adopted in the European Union, are a promising policy approach for decarbonizing transport fuels and reducing fossil fuel use. This paper examines the efficacy of LCFS policies, along with four major challenges that threaten their effectiveness. These challenges include leakage and shuffling of greenhouse gas (GHG) emissions, impacts on energy security, increased GHG emissions due to global land use conversion (indirect land use changes), and sustainability issues associated with biofuel production. We identify complementary policies that mitigate the severity of these challenges, while noting that some of these challenges are inherent to carbon and alternative fuel policies.

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  • Yeh, Sonia & Sperling, Daniel, 2010. "Low carbon fuel standards: Implementation scenarios and challenges," Energy Policy, Elsevier, vol. 38(11), pages 6955-6965, November.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:11:p:6955-6965
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    2. 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.
    3. Yeh, Sonia & Burtraw, Dallas & Sterner, Thomas & Greene, David, 2021. "Tradable performance standards in the transportation sector," Energy Economics, Elsevier, vol. 102(C).
    4. Khatiwada, Dilip & Seabra, Joaquim & Silveira, Semida & Walter, Arnaldo, 2012. "Accounting greenhouse gas emissions in the lifecycle of Brazilian sugarcane bioethanol: Methodological references in European and American regulations," Energy Policy, Elsevier, vol. 47(C), pages 384-397.
    5. Prasad, Ravita D. & Raturi, Atul, 2018. "Low-carbon measures for Fiji's land transport energy system," Utilities Policy, Elsevier, vol. 54(C), pages 132-147.
    6. 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).
    7. Coffman, Makena & Griffin, James P. & Bernstein, Paul, 2012. "An assessment of greenhouse gas emissions-weighted clean energy standards," Energy Policy, Elsevier, vol. 45(C), pages 122-132.
    8. Derek Lemoine, 2017. "Escape from Third-Best: Rating Emissions for Intensity Standards," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 789-821, August.
    9. Mandegari, Mohsen & Ebadian, Mahmood & Saddler, Jack (John), 2023. "The need for effective life cycle assessment (LCA) to enhance the effectiveness of policies such as low carbon fuel standards (LCFS's)," Energy Policy, Elsevier, vol. 181(C).
    10. Colina, Armando R. & Gafarov, Bulat & Hilscher, Jens, 2025. "California gasoline demand elasticity estimated using refinery outages," Energy Economics, Elsevier, vol. 148(C).
    11. Kessler, Jeff & Sperling, Daniel, 2016. "Tracking U.S. biofuel innovation through patents," Energy Policy, Elsevier, vol. 98(C), pages 97-107.
    12. Plevin, Richard J. & Delucchi, Mark A. & O’Hare, Michael, 2017. "Fuel carbon intensity standards may not mitigate climate change," Energy Policy, Elsevier, vol. 105(C), pages 93-97.
    13. Barbe, Andre, 2016. "The Effects of Restricting Coal Consumption," Conference papers 332698, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Huseynov, Samir & Palma, Marco A., 2018. "Does California’s LCFS Reduce CO2 Emissions?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274200, Agricultural and Applied Economics Association.
    15. Liepold, Constanze & Fabianek, Paul & Madlener, Reinhard, 2024. "A critical evaluation of the 2022 greenhouse gas mitigation quota in Germany from an environmental economics and policy perspective," Energy Policy, Elsevier, vol. 191(C).
    16. Boies, Adam M. & McFarlane, Dane & Taff, Steven & Watts, Winthrop F. & Kittelson, David B., 2011. "Implications of local lifecycle analyses and low carbon fuel standard design on gasohol transportation fuels," Energy Policy, Elsevier, vol. 39(11), pages 7191-7201.
    17. Constanze Liepold & Paul Fabianek & Reinhard Madlener, 2023. "A Critical Evaluation of the 2022 Greenhouse Gas Mitigation Quota in Germany from an Environmental Economics and Policy Perspective," FCN Working Papers 10/2023, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    18. James J. Winebrake & James J. Corbett & Fatima Umar & Daniel Yuska, 2019. "Pollution Tradeoffs for Conventional and Natural Gas-Based Marine Fuels," Sustainability, MDPI, vol. 11(8), pages 1-19, April.

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