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GTAP Resource #3572

"Global impact of multinational biofuel mandates on land use, feedstock prices, international trade and green gasses emissions"
by Banse, Martin, Andrzej Tabeau, Hans van Meijl, Geert Woltjer and Anne Gerdien Prins

Since 2001, a rapid grow of biofuel production has been observed driven by high crude oil prices as well as by growing interest in reducing Greenhouse-Gas-Emissions (GHG). High oil prices encouraged innovations reducing crude oil consumption and triggering governments all over the world to stimulate production and consumption of biofuels. To assure certain level reduction of GHG emissions, mandatory targets, e.g. in terms of binding blending targets have been established. These quantitative measures set targets for the share of renewable fuels (biofuels) in fuel consumption. The mandatory but also voluntary requirements are currently imposed for liquid biofuels in many major world economies except for Russia, Sorda et al. (2010).

The consequences of biofuel policies on agricultural markets and GHG emissions have been analyzed in numerous papers. The extensive overview of such studies can be found in Rajagopal and Zilberman (2007). As Rajagopal and Zilberman point out, most of these studies focus on simulating the impact of renewable fuel mandate either at national or at global level. The majority of these studies, however, analyses either the impact of the 2009 EU Directive on Renewable Energy (DRE) or the consequences of the 2007 US Energy Independence and Security Act (EISA) or both, OECD (2008), Al-Riffai et al. (2010), Banse et al. (2008), Hertel et al. (2010).

In this paper, we analyze the consequence of obligatory biofuel mandates implementation in all regions having such a policy. This paper explicitly examines the joint effect of obligatory biofuel mandates in the EU, US, Canada, Brazil, Rest of South America, India, and South-East Asia on land, food production, total GHG balance, trade and prices of agricultural commodities.

Resource Details (Export Citation) GTAP Keywords
Category: 2011 Conference Paper
Status: Published
By/In: Presented at the 14th Annual Conference on Global Economic Analysis, Venice, Italy
Date: 2011
Created: Banse, M. (4/14/2011)
Updated: Banse, M. (5/9/2011)
Visits: 1,996
- Domestic policy analysis
- Renewable energy

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