IDEAS home Printed from https://ideas.repec.org/h/spr/nrmchp/978-1-4419-0369-3_15.html
   My bibliography  Save this book chapter

US–Brazil Trade in Biofuels: Determinants, Constraints, and Implications for Trade Policy

In: Handbook of Bioenergy Economics and Policy

Author

Listed:
  • Christine Lasco

    (University of Illinois)

  • Madhu Khanna

    (University of Illinois)

Abstract

This chapter compares the cost and greenhouse gas (GHG) mitigation benefits of corn ethanol in the United States relative to sugarcane ethanol produced in Brazil and develops a stylized model to analyze its implications for the impact of US biofuel policies on social welfare and GHG emissions. The policies considered here include the $0.51 per gallon blender’s subsidy for ethanol and the import tariff of $0.54 per gallon on sugarcane ethanol. Our analysis shows that the combined subsidy and tariff policy decreases welfare by about $3 B depending on assumptions about the extent of market power the United States has in the world ethanol market. These policies also provide negligible (in some cases negative) benefits in the form of GHG reduction. The results indicate that the United States would gain from removing domestic and trade distortions in the ethanol market. Increasing ethanol demand in the world market will entail expansion of Brazil’s ethanol industry. We briefly discuss concerns about the environmental impacts of this expansion.

Suggested Citation

  • Christine Lasco & Madhu Khanna, 2010. "US–Brazil Trade in Biofuels: Determinants, Constraints, and Implications for Trade Policy," Natural Resource Management and Policy, in: Madhu Khanna & Jürgen Scheffran & David Zilberman (ed.), Handbook of Bioenergy Economics and Policy, chapter 0, pages 251-266, Springer.
    • Handle: RePEc:spr:nrmchp:978-1-4419-0369-3_15
    DOI: 10.1007/978-1-4419-0369-3_15
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. Sant'Anna, Marcelo Castello Branco, 2019. "How green is sugarcane ethanol?," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 807, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    2. Ujjayant Chakravorty & Marie-HéLène Hubert, 2013. "Global Impacts of the Biofuel Mandate under a Carbon Tax," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 282-288.
    3. Chao Bi & Jingjing Zeng & Wanli Zhang & Yonglin Wen, 2020. "Modelling the Coevolution of the Fuel Ethanol Industry, Technology System, and Market System in China: A History-Friendly Model," Energies, MDPI, vol. 13(5), pages 1-26, February.
    4. Khanna, Madhu & Hector, Nunez & David, Zilberman, 2014. "The Political-Economy of Biofuel and Cheap Oil Policies in Brazil," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169471, Agricultural and Applied Economics Association.
    5. de Gorter, Harry & Drabik, Dusan & Kliauga, Erika M. & Timilsina, Govinda R., 2013. "An economic model of Brazil's ethanol-sugar markets and impacts of fuel policies," Policy Research Working Paper Series 6524, The World Bank.

    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:spr:nrmchp:978-1-4419-0369-3_15. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.