Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2
EMISSIONS FROM INDIRECT LAND USE CHANGE: DO THEY MATTER WITH FUEL MARKET LEAKAGES?
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15
Full Text URL
Harry de Gorter
Dušan Drabik
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.
biofuels
ethanol
carbon leakage
emissions savings
tax credit
mandate