Global Impacts of the Biofuel Mandate under a Carbon Tax

“…1 Mandates may, however, engender unwanted phenomenon such as the green paradox 2 (Sinn, 2008(Sinn, , 2012 or fail to stimulate the supply of clean alternatives during the premandate phase. While a substantial number of articles (see e.g., van der Meijden et al, 2015;Winter, 2014;Michielsen, 2014;van der Ploeg and Withagen, 2012b,a;Smulders et al, 2012;Grafton et al, 2012;Gerlagh, 2011;Eichner and Pethig, 2011;Sinclair, 1992) assess, from a theory perspective, how subsidies directed towards substitute technologies or carbon taxes influence the extraction of a polluting exhaustible resource, only a few articles (e.g., Greaker et al, 2014;Fischer and Salant, 2014;Chakravorty and Hubert, 2013;De Gorter and Just, 2009;Allaire and Brown, 2015) examine mandating targets as a policy tool in the context of the green paradox. The contribution of this paper is to investigate the plausibility of the green paradox in a model where biofuel producers, like fossil producers, can anticipate future mandating policy, and thus, may adjust present day capacity in response to preannounced mandating targets.…”

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confidence: 99%

(Bio-)Fuel mandating and the green paradox

2021

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“…Chakravorty and Hubert () analyze the impact of a carbon tax on the transportation sector in the US.…”

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confidence: 99%

“…Chakravorty and Hubert (2013) analyze the impact of a carbon tax on the transportation sector in the US.C The editors of The Scandinavian Journal of Economics 2016.…”

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confidence: 99%

Long‐Run Impact of Biofuels on Food Prices

Chakravorty

Hubert

Moreaux

et al. 2017

Scandinavian J Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Long Run Impact of Biofuels on Food Prices Abstract More than 40% of US grain is now used to produce biofuels, which are used as substitutes for gasoline in transportation. Biofuels have been blamed universally for recent increases in world food prices. Many studies have shown that these energy mandates in the US and EU may have a large (30-60%) impact on food prices. In this paper we show that demand-side effects -in the form of population growth and income-driven preferences for meat and dairy products rather than cereals -may play as much of a role in raising food prices as biofuel policy. By specifying a Ricardian model with differential land quality, we show that a significant amount of new land will be converted to farming which is likely to cause a modest increase in food prices. However, biofuels may increase aggregate world carbon emissions, due to leakage from lower oil prices and conversion of pasture and forest land for farming. Terms of use: Documents inJEL-Code: Q240, Q320, Q420.

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Global Impacts of the Biofuel Mandate under a Carbon Tax

Cited by 18 publications

References 11 publications

The Long Run Impact of Biofuels on Food Prices

The Long Run Impact of Biofuels on Food Prices

(Bio-)Fuel mandating and the green paradox

Long‐Run Impact of Biofuels on Food Prices

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