2014
DOI: 10.1016/j.enpol.2013.11.006
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US biofuels subsidies and CO2 emissions: An empirical test for a weak and a strong green paradox

Abstract: Using energy data over the period 1981-2011 we find that US biofuels subsidies and production have provided a perverse incentive for US fossil fuel producers to increase their rate of extraction that has generated a weak green paradox. Further, in the short-run if the reduction in the CO 2 emissions from a one-to-one substitution between biofuels and fossil fuels is less than 26 percent, or less than 57 percent if long run effect is taken into account, then US biofuels production is likely to have resulted in … Show more

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Cited by 58 publications
(38 citation statements)
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“…Also in Brazil, where the ethanol industry is highly competitive, there is a debate on the need to decrease fiscal incentives to find a balance between the competitiveness of the sector and lost revenues for public bodies (Cavalcanti et al, 2012). The US are also including blending mandates for biofuels (as encompassed by the Renewable Fuel Standard) coupled with fiscal incentives (Grafton et al, 2014), and similar patterns feature energy policies in most emerging economies such as China and India, where fiscal incentives are coupled with blending mandates although at regional/state rather than national level (Hassan and Kalam, 2013).…”
Section: Biofuels: Overview and Consumers' Wtpmentioning
confidence: 99%
“…Also in Brazil, where the ethanol industry is highly competitive, there is a debate on the need to decrease fiscal incentives to find a balance between the competitiveness of the sector and lost revenues for public bodies (Cavalcanti et al, 2012). The US are also including blending mandates for biofuels (as encompassed by the Renewable Fuel Standard) coupled with fiscal incentives (Grafton et al, 2014), and similar patterns feature energy policies in most emerging economies such as China and India, where fiscal incentives are coupled with blending mandates although at regional/state rather than national level (Hassan and Kalam, 2013).…”
Section: Biofuels: Overview and Consumers' Wtpmentioning
confidence: 99%
“…Making biofuel affordable and encouraging people to use green energy but this is insufficient to meet the goals of GHGs reduction 44,45 . A study by Grafton et al 46 shows the subsidy for biofuel drives the oil and gas companies to extract more fossil fuels to reduce the price of fossil fuel and make it more affordable compared to biofuel. Viesturs and Melece 14 stated that efforts need to be made to increase the energy efficiency and conversion of the first generation biofuels to meet the global goal of the GHGs reduction.…”
Section: First Generation Biofuelsmentioning
confidence: 99%
“…Besides the negative environmental effect of excessive use, energy from fossil fuels can put at risk the future global energy security due to the significant drop in remaining resources on Terra. Burning fossil fuels for energy requirements contributes to the increase in greenhouse-gas concentrations in the atmosphere [2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17], thus enhancing the security of power supply chain and diminishing the greenhouse-gas emissions, which require heedful care and serious consideration now more than ever [18,19]. This is the main reason why both local and global measures need to be taken.…”
Section: Introductionmentioning
confidence: 97%