KEYWORDS:biofuels, ethanol, carbon leakage, emissions savings, tax credit, mandate
ABSTRACT:Indirect land use change, an agricultural market leakage, has been a major controversy over the Environmental Protection Agency’s (EPA) requirement for corn-ethanol to reduce greenhouse gas (GHG) emissions by 20 percent relative to gasoline it is assumed to replace. This paper shows that corn-ethanol policies generate far greater carbon leakage in the fuel market itself. Hence, corn-ethanol does not meet EPA’s threshold, regardless of ethanol policy and whether one includes emissions from land use change.
Please Cite this Article as:
Dušan Drabik, Harry de Gorter (2013) Emissions From Indirect Land Use Change: Do They Matter With Fuel Market Leakages?. Review of Agricultural and Applied Economics. XVI (Number 2, 2013): 3-15. doi: 10.15414/raae.2013.16.02.03-15
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