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Biofuels, Climate Policy, and the European Vehicle Fleet

Author

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  • Xavier Gitiaux
  • Sebastian Rausch
  • Sergey Paltsev
  • John M. Reilly

Abstract

We examine the effect of biofuels mandates and climate policy on the European vehicle fleet, in particular the prospects for diesel and gasoline vehicles. Our analysis is based on a dynamic computable general equilibrium model of the world economy which explicitly incorporates current generation biofuels, accounts for stock turnover of the vehicle fleets, disaggregates gasoline and diesel cars, and represents an advanced E85 vehicle. We find that the European vehicle fleet is robust to proposed biofuels mandates owing to an existing fuel tax and tariffs structure that favours diesel vehicles. Harmonising excise duties on diesel and gasoline or lowering tariffs on biofuel imports, however, is shown to reverse the trend toward more diesel vehicles and significantly alters the efficiency costs and environmental effectiveness of renewable fuel policies. © 2012 LSE and the University of Bath

Suggested Citation

  • Xavier Gitiaux & Sebastian Rausch & Sergey Paltsev & John M. Reilly, 2012. "Biofuels, Climate Policy, and the European Vehicle Fleet," Journal of Transport Economics and Policy, University of Bath, vol. 46(1), pages 1-23, January.
    • Handle: RePEc:tpe:jtecpo:v:46:y:2012:i:1:p:1-23
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    Cited by:

    1. Hoefnagels, Ric & Banse, Martin & Dornburg, Veronika & Faaij, André, 2013. "Macro-economic impact of large-scale deployment of biomass resources for energy and materials on a national level—A combined approach for the Netherlands," Energy Policy, Elsevier, vol. 59(C), pages 727-744.
    2. Mochizuki, Junko & Coffman, Makena & Yanagida, John F., 2015. "Market, welfare and land-use implications of lignocellulosic bioethanol in Hawai'i," Renewable Energy, Elsevier, vol. 76(C), pages 102-114.
    3. Winchester, Niven & McConnachie, Dominic & Wollersheim, Christoph & Waitz, Ian A., 2013. "Economic and emissions impacts of renewable fuel goals for aviation in the US," Transportation Research Part A: Policy and Practice, Elsevier, vol. 58(C), pages 116-128.
    4. Beach, Robert H. & Birur, Dileep K. & Davis, Lauren M. & Ross, Martin T., 2011. "A Dynamic General Equilibrium Analysis of U.S. Biofuels Production," Conference papers 332053, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Paltsev, Sergey & Chen, Y.-H. Henry & Karplus, Valerie & Kishimoto, Paul & Reilly, John & Loeschel, Andreas & von Graevenitz, Kathrine & Koesler, Simon, 2015. "Reducing CO2 from cars in the European Union: Emission standards or emission trading?," CAWM Discussion Papers 84, University of Münster, Münster Center for Economic Policy (MEP).
    6. Junko Mochizuki & John F. Yanagida & Makena Coffman, 2013. "Market, Welfare and Land-Use Implications of Lignocellulosic Bioethanol in Hawai�i," Working Papers 2013-10, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    7. Schafer, Andreas, 2012. "Introducing behavioral change in transportation into energy/economy/environment models," Policy Research Working Paper Series 6234, The World Bank.
    8. Chen, Y.-H. Henry & Paltsev, Sergey & Reilly, John M. & Morris, Jennifer F. & Babiker, Mustafa H., 2016. "Long-term economic modeling for climate change assessment," Economic Modelling, Elsevier, vol. 52(PB), pages 867-883.
    9. Aileen Lam, 2013. "Projections of future emissions and energy use from passenger cars as a result of policies in the EU with a dynamic model of technological change," 4CMR Working Paper Series 005, University of Cambridge, Department of Land Economy, Cambridge Centre for Climate Change Mitigation Research.
    10. Sergey Paltsev & Y.-H. Henry Chen & Valerie Karplus & Paul Kishimoto & John Reilly & Andreas Löschel & Kathrine Graevenitz & Simon Koesler, 2018. "Reducing CO2 from cars in the European Union," Transportation, Springer, vol. 45(2), pages 573-595, March.
    11. Cai, Yongxia & Beach, Robert H. & Zhang, Yuquan, 2014. "Exploring the Implications of Oil Prices for Global Biofuels, Food Security, and GHG Mitigation," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170589, Agricultural and Applied Economics Association.

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