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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.

Suggested Citation

  • 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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    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.
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    8. 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.
    9. Barbe, Andre, 2016. "The Effects of Restricting Coal Consumption," Conference papers 332698, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. 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.
    11. 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.
    12. 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).
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