IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v39y2011i7p4308-4312.html
   My bibliography  Save this article

Four myths surrounding U.S. biofuels

Author

Listed:
  • Wetzstein, M.
  • Wetzstein, H.

Abstract

The rapid growth of biofuels has elicited claims and predictions concerning the current and future role of these fuels in the U.S. vehicle-fuel portfolio. These assertions are at times based on a false set of assumptions concerning the biofuel's market related to the petroleum and agricultural commodities markets, and the nonmarket consequences of our automobile driving. As an aid in clarifying these market relations, the following four biofuel myths are presented: (1) biofuels will be adopted because we will soon run out of oil, (2) biofuels will solve the major external costs associated with our automobile driving, (3) biofuels cause food price inflation (the food before fuel issue), and (4) biofuels will become a major vehicle fuel.

Suggested Citation

  • Wetzstein, M. & Wetzstein, H., 2011. "Four myths surrounding U.S. biofuels," Energy Policy, Elsevier, vol. 39(7), pages 4308-4312, July.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:7:p:4308-4312
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511003314
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peter Ferderer, J., 1996. "Oil price volatility and the macroeconomy," Journal of Macroeconomics, Elsevier, vol. 18(1), pages 1-26.
    2. Harri, Ardian & Nalley, Lanier & Hudson, Darren, 2009. "The Relationship between Oil, Exchange Rates, and Commodity Prices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(02), pages 501-510, August.
    3. Ian W. H. Parry & Kenneth A. Small, 2005. "Does Britain or the United States Have the Right Gasoline Tax?," American Economic Review, American Economic Association, vol. 95(4), pages 1276-1289, September.
    4. Paul Castillo & Carlos Montoro & Vicente Tuesta, 2005. "Inflation Premium and Oil Price Volatility," Working Papers Central Bank of Chile 350, Central Bank of Chile.
    5. Pickering, Andrew, 2008. "The oil reserves production relationship," Energy Economics, Elsevier, vol. 30(2), pages 352-370, March.
    6. James L. Smith, 2005. "Inscrutable OPEC? Behavioral Tests of the Cartel Hypothesis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 51-82.
    7. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers Archive 12881, Iowa State University, Department of Economics.
    8. James L. Smith, 2009. "World Oil: Market or Mayhem?," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 145-164, Summer.
    9. Köhler, Jonathan & Whitmarsh, Lorraine & Nykvist, Björn & Schilperoord, Michel & Bergman, Noam & Haxeltine, Alex, 2009. "A transitions model for sustainable mobility," Ecological Economics, Elsevier, vol. 68(12), pages 2985-2995, October.
    10. Harrison, R. Wes, 2009. "The Food versus Fuel Debate: Implications for Consumers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(02), August.
    11. Ong, Yee Kang & Bhatia, Subhash, 2010. "The current status and perspectives of biofuel production via catalytic cracking of edible and non-edible oils," Energy, Elsevier, vol. 35(1), pages 111-119.
    12. Benjamin Senauer, 2008. "Food Market Effects of a Global Resource Shift Toward Bioenergy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1226-1232.
    13. Vedenov, Dmitry & Wetzstein, Michael, 2008. "Toward an optimal U.S. ethanol fuel subsidy," Energy Economics, Elsevier, vol. 30(5), pages 2073-2090, September.
    14. Sumanjeet Singh, 2009. "Global food crisis: magnitude, causes and policy measures," International Journal of Social Economics, Emerald Group Publishing, vol. 36(1), pages 23-36, January.
    15. Harrison, R. Wes, 2009. "The Food versus Fuel Debate: Implications for Consumers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(02), pages 493-500, August.
    16. Yang, Hong & Zhou, Yuan & Liu, Junguo, 2009. "Land and water requirements of biofuel and implications for food supply and the environment in China," Energy Policy, Elsevier, vol. 37(5), pages 1876-1885, May.
    17. Hayes, Dermot J. & Babcock, Bruce A. & Fabiosa, Jacinto F. & Tokgoz, Simla & Elobeid, Amani E. & Yu, Tun-Hsiang (Edward) & Dong, Fengxia & Hart, Chad E. & Chavez, Eddie C. & Pan, Suwen & Carriquiry, M, 2009. "Biofuels: Potential Production Capacity, Effects on Grain and Livestock Sectors, and Implications for Food Prices and Consumers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(02), August.
    18. González-García, Sara & Luo, Lin & Moreira, Mª Teresa & Feijoo, Gumersindo & Huppes, Gjalt, 2009. "Life cycle assessment of flax shives derived second generation ethanol fueled automobiles in Spain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(8), pages 1922-1933, October.
    19. Roberto F. Aguilera & Roderick G. Eggert & Gustavo Lagos C.C. & John E. Tilton, 2009. "Depletion and the Future Availability of Petroleum Resources," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 141-174.
    20. Chen, Sheng-Tung & Kuo, Hsiao-I & Chen, Chi-Chung, 2010. "Modeling the relationship between the oil price and global food prices," Applied Energy, Elsevier, vol. 87(8), pages 2517-2525, August.
    21. Ian W. H. Parry & Margaret Walls & Winston Harrington, 2007. "Automobile Externalities and Policies," Journal of Economic Literature, American Economic Association, vol. 45(2), pages 373-399, June.
    22. Zhang, Zibin & Lohr, Luanne & Escalante, Cesar & Wetzstein, Michael, 2010. "Food versus fuel: What do prices tell us?," Energy Policy, Elsevier, vol. 38(1), pages 445-451, January.
    23. Thomas W. Hertel & Wallace E. Tyner & Dileep K. Birur, 2010. "The Global Impacts of Biofuel Mandates," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 75-100.
    24. M.A. Adelman and G.C. Watkins, 2008. "Reserve Prices and Mineral Resource Theory," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 1-16.
    25. Kneller, Richard & Young, Garry, 2001. "Business Cycle Volatility, Uncertainty and Long-Run Growth," Manchester School, University of Manchester, vol. 69(5), pages 534-552, Special I.
    26. Zibin Zhang & Luanne Lohr & Cesar L. Escalante & Michael E. Wetzstein, 2008. "Mitigating Volatile U.S. Gasoline Prices and Internalizing External Costs: A Win-Win Fuel Portfolio," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1218-1225.
    27. Zibin Zhang & Luanne Lohr & Cesar Escalante & Michael Wetzstein, 2009. "Ethanol, Corn, and Soybean Price Relations in a Volatile Vehicle-Fuels Market," Energies, MDPI, Open Access Journal, vol. 2(2), pages 1-20, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Teterin, Pavel & Brooks, Robert & Enders, Walter, 2016. "Smooth volatility shifts and spillovers in U.S. crude oil and corn futures markets," Journal of Empirical Finance, Elsevier, vol. 38(PA), pages 22-36.
    2. Fernandez-Perez, Adrian & Frijns, Bart & Tourani-Rad, Alireza, 2016. "Contemporaneous interactions among fuel, biofuel and agricultural commodities," Energy Economics, Elsevier, vol. 58(C), pages 1-10.
    3. Gal Hochman & Scott Kaplan & Deepak Rajagopal & David Zilberman, 2012. "Biofuel and Food-Commodity Prices," Agriculture, MDPI, Open Access Journal, vol. 2(3), pages 1-10, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:7:p:4308-4312. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/enpol .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.