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Economics of Biofuels: An Overview of Policies, Impacts and Prospects

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  • Moschini, GianCarlo
  • Cui, Jingbo
  • Lapan, Harvey

Abstract

This paper provides an overview of the economics of biofuels. It starts by describing the remarkable growth of the biofuel industry over the last decade, with emphasis on developments in the United States, Brazil and the European Union, and it identifies the driving role played by some critical policies. After a brief discussion of the motivations that are commonly argued in favor of biofuels and biofuel policies, the paper presents an assessment of the impacts of biofuels from the economics perspective. In particular, the paper explains the basic analytics of biofuel mandates, reviews several existing studies that have estimated the economic impacts of biofuels, presents some insights from a specific model, and outlines an appraisal of biofuel policies and the environmental impacts of biofuels. The paper concludes with an examination of several open issues and the future prospects of biofuels.

Suggested Citation

  • Moschini, GianCarlo & Cui, Jingbo & Lapan, Harvey, 2012. "Economics of Biofuels: An Overview of Policies, Impacts and Prospects," Staff General Research Papers Archive 35548, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:35548
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. A discussion of biofuel policies, as seen from Iowa
      by Economic Logician in Economic Logic on 2012-11-20 21:35:00

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    Cited by:

    1. Moschini, GianCarlo & Lapan, Harvey & Kim, Hyunseok, 2016. "The Renewable Fuel Standard: Market and Welfare Effects of Alternative Policy Scenarios," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235721, Agricultural and Applied Economics Association.
    2. Sesmero, Juan P. & Balagtas, Joseph V. & Pratt, Michelle, 2015. "The Economics of Spatial Competition for Corn Stover," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(3), August.
    3. Juan Sesmero & Michelle Pratt & Wallace Tyner, 2015. "Supply Response, Marginal Cost, and Soil Erosion Implications of Stover-based Biofuels," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(3), pages 502-523.
    4. Romano, Donato, 0. "The Bio-based Economy: a New Development Model," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 3.
    5. Clancy, Matthew & Moschini, GianCarlo, 2014. "Mandates and the Incentives for Innovation," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170182, Agricultural and Applied Economics Association.
    6. Sesmero, Juan & Balagtas, Joseph Valdes & Pratt, Michelle, 2014. "Spatial Competition and Economics of Biofuels from Corn Stover," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170595, Agricultural and Applied Economics Association.
    7. GianCarlo Moschini & Harvey Lapan & Hyunseok Kim, 2017. "The Renewable Fuel Standard in Competitive Equilibrium: Market and Welfare Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(5), pages 1117-1142.
    8. Clancy, Matthew S., 2015. "Combinatorial innovation, evidence from patent data, and mandated innovation," ISU General Staff Papers 201501010800005678, Iowa State University, Department of Economics.
    9. 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.

    More about this item

    Keywords

    biodiesel; Biofuel policies; ethanol; Greenhouse gas emissions; mandates.;

    JEL classification:

    • F1 - International Economics - - Trade
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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