EconPapers    
Economics at your fingertips  
 

Investment in Cellulosic Biofuel Refineries: Do Waivable Biofuel Mandates Matter?

Ruiqing Miao, David Hennessy and Bruce Babcock

American Journal of Agricultural Economics, 2012, vol. 94, issue 3, 750-762

Abstract: We develop a conceptual model to study the impact of mandate policies on stimulating investment in cellulosic biofuel refineries. In a two-period framework, we compare the first-period investment level (FIL) under three scenarios: laissez-faire, non-waivable mandate (NWM) policy, and waivable mandate (WM) policy. Results show that when plant-level marginal costs are increasing then both NWM policy and WM policy may stimulate FIL. The WM policy has a smaller impact than does the NWM policy. When the plant-level marginal costs are constants, however, WM policy does not increase FIL but does increase the expected profit of more efficient investors. Copyright 2012, Oxford University Press.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://hdl.handle.net/10.1093/ajae/aar142 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Investment in Cellulosic Biofuel Refineries: Do Waivable Biofuel Mandates Matter? (2012)
Working Paper: Investment in Cellulosic Biofuel Refineries: Do Waivable Biofuel Mandates Matter? (2012) Downloads
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:oup:ajagec:v:94:y:2012:i:3:p:750-762

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2025-03-22
Handle: RePEc:oup:ajagec:v:94:y:2012:i:3:p:750-762