The Impact of Ethanol Policy on Social Welfare and GHG Emissions

Christine Lasco and Madhu Khanna

No 53494, Environmental and Rural Development Impacts Conference, October 15-16, 2008, St. Louis, Missouri from Farm Foundation, Transition to a Bio Economy Conferences

Abstract: We develop a stylized model of fuel markets in an open economy to analyze the impact of ethanol policy on social welfare and greenhouse gas (GHG) emissions. The policies considered here include the $0.51 per gallon blender’s subsidy for ethanol and the import tariff of $0.54 per gallon on sugarcane ethanol. Our analysis shows that the combined subsidy and tariff policy decreases welfare by about $3.6 billion relative to a non intervention policy. Furthermore, there are no GHG mitigation benefits since GHG emissions show a slight increase (0.08%) when both policies are in place.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 11
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/53494/files/LascoChristine.pdf (application/pdf)

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:ags:fftren:53494

DOI: 10.22004/ag.econ.53494

Access Statistics for this paper

More papers in Environmental and Rural Development Impacts Conference, October 15-16, 2008, St. Louis, Missouri from Farm Foundation, Transition to a Bio Economy Conferences Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().