Killing two birds with one stone: US and EU biofuel programmes

Jean-Marc Bourgeon and David Tréguer ()

European Review of Agricultural Economics, 2010, vol. 37, issue 3, 369-394

Abstract: The United States and the European Union have been implementing sizeable biofuel support programmes since the beginning of the decade. Supporting the biofuel industry raises the price of the agricultural feedstock, and hence increases the farmer revenue and reduces the need for direct income support. Thus, for a given objective of agricultural income, the regulator is able to operate a partial substitution between agricultural decoupled payments and the support to the biofuel industry (subsidies or mandatory blending). We detail these effects and derive the biofuel and the environmental policies that maximise social welfare. We also show that for high levels of biofuel production, cross-compliance provisions are a more expensive way of enforcing the environmental policy than fining farmers. Oxford University Press and Foundation for the European Review of Agricultural Economics 2010; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1093/erae/jbq025 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Killing two birds with one stone: US and EU biofuel programmes (2010)
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:erevae:v:37:y:2010:i:3:p:369-394

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

More articles in European Review of Agricultural Economics from Oxford University Press and the European Agricultural and Applied Economics Publications Foundation Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().