Efficiency of a Biofuel Subsidy Policy in the Presence of Environmental Externalities
The object of this paper is to analyze, in a general equilibrium setting with four markets, the efficiency of a biofuel subsidy policy. The analysis takes into account environmental externalities associated both with the production and the consumption of biofuels, as well as associated with the production of agricultural raw material. Our preliminary numerical results, applied to the biodiesel subsidy policy in France, first show that this policy increases the utility of the representative consumer compared to the laissez-faire solution. The same policy action leads, however, to an increased level of agricultural and GHG emissions, in comparison with the laissez-faire solution.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ryan, Lisa & Convery, Frank & Ferreira, Susana, 2006. "Stimulating the use of biofuels in the European Union: Implications for climate change policy," Energy Policy, Elsevier, vol. 34(17), pages 3184-3194, November.
- Brännlund, Runar & Kriström, Bengt & Lundgren, Tommy & Marklund, Per-Olov, 2008. "The Economics of Biofuels," Umeå Economic Studies 736, Umeå University, Department of Economics.
- Gardner Bruce, 2007. "Fuel Ethanol Subsidies and Farm Price Support," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-22, December.
- Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
- Tyner Wallace E., 2007. "Policy Alternatives for the Future Biofuels Industry," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-13, December.
- Ofir D. Rubin & Miguel Carriquiry & Dermot J. Hayes, 2008. "Implied Objectives of U.S. Biofuel Subsidies," Center for Agricultural and Rural Development (CARD) Publications 08-wp459, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Lundgren, Tommy & Marklund, Per-Olov & Brannlund, Runar & Kristrom, Bengt, 2008. "The Economics of Biofuels," International Review of Environmental and Resource Economics, now publishers, vol. 2(3), pages 237-280, November.
When requesting a correction, please mention this item's handle: RePEc:ags:eaae08:44399. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.