The Social Costs and Benefits of Biofuels: The Intersection of Environmental, Energy and Agricultural Policy
Harry de Gorter () and
Applied Economic Perspectives and Policy, 2010, vol. 32, issue 1, 4-32
The efficacy of alternative biofuel policies in achieving energy, environmental and agricultural policy goals is assessed using economic cost-benefit analysis. Government mandates are superior to consumption subsidies, especially with suboptimal fuel taxes and the higher costs involved with raising tax revenues. But subsidies with mandates cause adverse interaction effects; oil consumption is subsidized instead. This unique result also applies to renewable electricity that faces similar policy combinations. Ethanol policy can have a significant impact on corn prices; if not, inefficiency costs rise sharply. Ethanol policy can increase the inefficiency of farm subsidies and vice-versa. Policies that discriminate against trade, such as production subsidies and tariffs, can more than offset any benefits of a mandate. Sustainability standards are ineffective and illegal according to the WTO, and so should be re-designed. Copyright 2010, Oxford University Press.
References: Add references at CitEc
Citations: View citations in EconPapers (72) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Journal Article: The Social Costs and Benefits of Biofuels: The Intersection of Environmental, Energy and Agricultural Policy (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oup:apecpp:v:32:y:2010:i:1:p:4-32
Ordering information: This journal article can be ordered from
Access Statistics for this article
Applied Economic Perspectives and Policy is currently edited by Timothy Park, Tomislav Vukina and Ian Sheldon
More articles in Applied Economic Perspectives and Policy from Agricultural and Applied Economics Association Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().