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A Low-Carbon Fuel Standard for California Part 2: Policy Analysis

Author

Listed:
  • Farrell, Alexander E.
  • Sperling, Daniel
  • Brandt, A.R.
  • Eggert, A.
  • Farrell, A.E.
  • Haya, B.K.
  • Hughes, J.
  • Jenkins, B.M.
  • Jones, A.D.
  • Kammen, D.M.
  • Knittel, C.R.
  • Melaina, M.W.
  • O'Hare, M.
  • Plevin, R.J.
  • Sperling, D.

Abstract

The Low Carbon Fuel Standard (LCFS) can play a major role in reducing greenhouse gas emissions and stimulating improvements in transportation fuel technologies so that California can meet its climate policy goals. In Part 1 of this study we evaluated the technical feasibility of achieving a 10 percent reduction in the carbon intensity (measured in gCO2e/MJ) of transportation fuels in California by 2020. We identified six scenarios based on a variety of different technologies that could meet or exceed this goal, and concluded that the goal was ambitious but attainable. In Part 2, we examine many of the specific policy issues needed to achieve this ambitious target. Our recommendations are based on the best information we were able to gather in the time available, including consultation with many different stakeholders. The recommendations are intended to assist the California Air Resources Board, Energy Commission, and Public Utility Commission, as well as private organizations and individuals, in addressing the many complex issues involved in designing a low carbon fuel standard. Choices about specific policies and calculation of numeric values for use in regulation must, of course, be made by these regulatory agencies. The analysis we present here is only illustrative.

Suggested Citation

  • Farrell, Alexander E. & Sperling, Daniel & Brandt, A.R. & Eggert, A. & Farrell, A.E. & Haya, B.K. & Hughes, J. & Jenkins, B.M. & Jones, A.D. & Kammen, D.M. & Knittel, C.R. & Melaina, M.W. & O'Hare, M., 2007. "A Low-Carbon Fuel Standard for California Part 2: Policy Analysis," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt1hm6k089, Institute of Transportation Studies, UC Berkeley.
  • Handle: RePEc:cdl:itsrrp:qt1hm6k089
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    Cited by:

    1. Holland, Stephen P., 2012. "Emissions taxes versus intensity standards: Second-best environmental policies with incomplete regulation," Journal of Environmental Economics and Management, Elsevier, vol. 63(3), pages 375-387.
    2. Daniel M. Kammen & Alexander E. Farrell & Richard J. Plevin & Andrew D. Jones & Mark A. Delucchi & Gregory F. Nemet, 2007. "Energy and Greenhouse Impacts of Biofuels: A Framework for Analysis," OECD/ITF Joint Transport Research Centre Discussion Papers 2007/2, OECD Publishing.
    3. Stepp, Matthew D. & Winebrake, James J. & Hawker, J. Scott & Skerlos, Steven J., 2009. "Greenhouse gas mitigation policies and the transportation sector: The role of feedback effects on policy effectiveness," Energy Policy, Elsevier, vol. 37(7), pages 2774-2787, July.
    4. Parker, Nathan C. & Ogden, Joan M. & Fan, Yueyue, 2008. "The role of biomass in California's hydrogen economy," Energy Policy, Elsevier, vol. 36(10), pages 3925-3939, October.
    5. Rubin, Jonathan & Leiby, Paul N., 2013. "Tradable credits system design and cost savings for a national low carbon fuel standard for road transport," Energy Policy, Elsevier, vol. 56(C), pages 16-28.
    6. Rode, Philipp & Floater, Graham & Thomopoulos, Nikolas & Docherty, James & Schwinger, Peter & Mahendra, Anjali & Fang, Wanli, 2014. "Accessibility in cities: transport and urban form," LSE Research Online Documents on Economics 60477, London School of Economics and Political Science, LSE Library.
    7. Kammen, Daniel M & Farrell, Alexander E & Plevin, Richard J & Jones, Andrew D & Nemet, Gregory F & Delucchi, Mark A, 2008. "Energy and Greenhouse Gas Impacts of Biofuels: A Framework for Analysis," Institute of Transportation Studies, Working Paper Series qt3fs897q3, Institute of Transportation Studies, UC Davis.
    8. Santos, Georgina & Behrendt, Hannah & Maconi, Laura & Shirvani, Tara & Teytelboym, Alexander, 2010. "Part I: Externalities and economic policies in road transport," Research in Transportation Economics, Elsevier, vol. 28(1), pages 2-45.
    9. Derek Lemoine, 2017. "Escape from Third-Best: Rating Emissions for Intensity Standards," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 789-821, August.
    10. Yeh, Sonia & Witcover, Julie & Lade, Gabriel E. & Sperling, Daniel, 2016. "A review of low carbon fuel policies: Principles, program status and future directions," Energy Policy, Elsevier, vol. 97(C), pages 220-234.
    11. Hester, Annette & Lawrence, Leah, 2010. "A sub-national public-private strategic alliance for innovation and export development: the case of the Canadian province of Alberta's oil sands," Documentos de Proyectos 292, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    12. Leighty, Wayne & Ogden, Joan M. & Yang, Christopher, 2012. "Modeling transitions in the California light-duty vehicles sector to achieve deep reductions in transportation greenhouse gas emissions," Energy Policy, Elsevier, vol. 44(C), pages 52-67.
    13. repec:eee:eecrev:v:99:y:2017:i:c:p:191-215 is not listed on IDEAS
    14. Parker, Nathan C & Ogden, Joan & Fan, Yueyue, 2009. "The role of biomass in California's hydrogen economy," Institute of Transportation Studies, Working Paper Series qt8412751s, Institute of Transportation Studies, UC Davis.
    15. repec:spr:nathaz:v:89:y:2017:i:2:d:10.1007_s11069-017-2981-5 is not listed on IDEAS
    16. Yeh, Sonia & Sperling, Daniel, 2010. "Low carbon fuel standards: Implementation scenarios and challenges," Energy Policy, Elsevier, vol. 38(11), pages 6955-6965, November.
    17. repec:gam:jeners:v:10:y:2017:i:8:p:1089-:d:105940 is not listed on IDEAS
    18. Rhodes, Ekaterina & Axsen, Jonn & Jaccard, Mark, 2015. "Gauging citizen support for a low carbon fuel standard," Energy Policy, Elsevier, vol. 79(C), pages 104-114.
    19. Rocio A., Diaz-Chavez, 2011. "Assessing biofuels: Aiming for sustainable development or complying with the market?," Energy Policy, Elsevier, vol. 39(10), pages 5763-5769, October.
    20. Meredith Fowlie & Christopher R. Knittel & Catherine Wolfram, 2008. "Sacred Cars? Optimal Regulation of Stationary and Non-stationary Pollution Sources," NBER Working Papers 14504, National Bureau of Economic Research, Inc.
    21. Axsen, Jonn & Kurani, Kenneth S. & McCarthy, Ryan & Yang, Christopher, 2011. "Plug-in hybrid vehicle GHG impacts in California: Integrating consumer-informed recharge profiles with an electricity-dispatch model," Energy Policy, Elsevier, vol. 39(3), pages 1617-1629, March.

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