Impacts of US biodiesel mandates on world vegetable oil markets

Jingbo Cui () and Jeremy I. Martin

Energy Economics, 2017, vol. 65, issue C, 148-160

Abstract: In this paper we seek to understand the impact of expanded use of soybean oil biodiesel to address biofuel mandates on global vegetable oil markets, and in particular on the demand for palm oil. An open-economy equilibrium model is derived to investigate the market effects of biodiesel expansion on related energy and vegetable oil markets. The model is calibrated to represent the recent benchmark data in calendar year 2014. The simulation estimates suggest that the expanded use of soy oil for biodiesel in the US will have considerable impacts on world vegetable oil markets. The majority of the vegetable oil replacement is likely to occur through substitution of palm oil under a wide range of plausible elasticity values on the demand for vegetable oil and the demand substitution between soy oils and palm oils.

Keywords: Biofuel policies; Diesel taxes; Mandates; Renewable fuel standard (search for similar items in EconPapers)
JEL-codes: F1 H2 Q2 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988317301172
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:65:y:2017:i:c:p:148-160

DOI: 10.1016/j.eneco.2017.04.010

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().