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The New Markets for Renewable Identification Numbers


  • Wyatt Thompson
  • Seth Meyer
  • Pat Westhoff


Renewable Identification Numbers (RINs) were developed to act as tracking mechanisms that ensure compliance with the U.S. biofuel use mandates legislated in 2005 and increased and adjusted to include sub-mandates in 2007. Reviewing the rules for RIN production and use, we conclude that RIN prices will be hierarchical, and rollover provisions allow stock-holding. We illustrate our interpretation by constructing RIN supply and use tables, and by discussing how expiring tax credits and the specific tariff raise RIN prices and mandate costs. RIN markets are critical for estimating biofuel use mandate effects on biofuel and feedstock markets and welfare. Copyright 2010, Oxford University Press.

Suggested Citation

  • Wyatt Thompson & Seth Meyer & Pat Westhoff, 2010. "The New Markets for Renewable Identification Numbers," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(4), pages 588-603.
  • Handle: RePEc:oup:apecpp:v:32:y:2010:i:4:p:588-603

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    References listed on IDEAS

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    Cited by:

    1. Wang, Xiaolei & Ouyang, Yanfeng & Yang, Hai & Bai, Yun, 2013. "Optimal biofuel supply chain design under consumption mandates with renewable identification numbers," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 158-171.
    2. Whistance, Jarrett & Thompson, Wyatt, 2014. "The role of CAFE standards and alternative-fuel vehicle production credits in U.S. biofuels markets," Energy Policy, Elsevier, vol. 74(C), pages 147-157.
    3. Lade, Gabriel & Lin, C.-Y. Cynthia & Smith, Aaron, 2014. "Policy Uncertainty under Market-Based Regulations: Evidence from the Renewable Fuel Standard," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170673, Agricultural and Applied Economics Association.
    4. Whistance, Jarrett & Ripplinger, David & Thompson, Wyatt, 2016. "Biofuel-related price transmission using Renewable Identification Number prices to signal mandate regime," Energy Economics, Elsevier, vol. 55(C), pages 19-29.
    5. repec:eee:energy:v:141:y:2017:i:c:p:2045-2053 is not listed on IDEAS
    6. Philip Abbott, 2013. "Biofuels, Binding Constraints and Agricultural Commodity Price Volatility," NBER Working Papers 18873, National Bureau of Economic Research, Inc.
    7. Mason, Charles F. & Wilmot, Neil A., 2016. "Price discontinuities in the market for RINs," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PB), pages 79-97.
    8. repec:eee:enepol:v:113:y:2018:i:c:p:368-375 is not listed on IDEAS
    9. Markel, Evan & English, Burton C. & Lambert, Dayton, 2016. "Thresholds and Regime Change in the Market for Renewable Identification Numbers," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236037, Agricultural and Applied Economics Association.
    10. Ahmedov, Zafarbek & Woodard, Joshua D., 2012. "Do RIN Mandates and Blender's Tax Credit Affect Blenders' Hedging Strategies?," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124980, Agricultural and Applied Economics Association.
    11. Gbadebo Oladosu & Siwa Msangi, 2013. "Biofuel-Food Market Interactions: A Review of Modeling Approaches and Findings," Agriculture, MDPI, Open Access Journal, vol. 3(1), pages 1-19, February.
    12. JunJie Wu & Christian Langpap, 2015. "The Price and Welfare Effects of Biofuel Mandates and Subsidies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(1), pages 35-57, September.
    13. Christensen, Adam & Hobbs, Benjamin, 2016. "A model of state and federal biofuel policy: Feasibility assessment of the California Low Carbon Fuel Standard," Applied Energy, Elsevier, vol. 169(C), pages 799-812.
    14. Christensen, Adam & Siddiqui, Sauleh, 2015. "Fuel price impacts and compliance costs associated with the Renewable Fuel Standard (RFS)," Energy Policy, Elsevier, vol. 86(C), pages 614-624.
    15. Philip Abbott, 2014. "Biofuels, Binding Constraints, and Agricultural Commodity Price Volatility," NBER Chapters,in: The Economics of Food Price Volatility, pages 91-131 National Bureau of Economic Research, Inc.
    16. Gabriel E. Lade & C.Y. Cynthia Lin Lawell & Aaron Smith, 2016. "Policy Shocks and Market-Based Regulations: Evidence from the Renewable Fuel Standard," Center for Agricultural and Rural Development (CARD) Publications 16-wp565, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    17. Whistance, Jarrett & Thompson, Wyatt & Meyer, Seth, 2017. "Interactions between California's Low Carbon Fuel Standard and the National Renewable Fuel Standard," Energy Policy, Elsevier, vol. 101(C), pages 447-455.

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