The role of federal Renewable Fuel Standards and market structure on the growth of the cellulosic biofuel sector
| Autor: | Tristan D. Skolrud, Suzette P. Galinato, Jonathan K. Yoder, Gregmar I. Galinato, C. Richard Shumway |
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| Rok vydání: | 2016 |
| Předmět: |
Economics and Econometrics
Natural resource economics 020209 energy 05 social sciences Renewable Fuel Standard Context (language use) 02 engineering and technology Renewable fuels Agricultural economics Market structure General Energy Biofuel Cellulosic ethanol 0502 economics and business 0202 electrical engineering electronic engineering information engineering Economics Production (economics) Market power 050207 economics health care economics and organizations |
| Zdroj: | Energy Economics. 58:141-151 |
| ISSN: | 0140-9883 |
| Popis: | This article examines the effect of the Renewable Fuel Standards and market power on the growth of the cellulosic biofuel sector. We develop a sectoral model to show how changes in the regulations governing cellulosic fuel production affect the equilibrium quantity of cellulosic ethanol. Based on model calibration for Washington State, we find that existing low-cost waivers purchased by obligated parties in lieu of cellulosic fuel production negate the effectiveness of the Renewable Fuel Standard to induce the production and consumption of cellulosic biofuels. However, raising waiver price slightly relative to the status quo significantly increases the equilibrium quantity of cellulosic ethanol. The high cost of cellulosic ethanol production is often cited as the cause of the lack of cellulosic ethanol production, which is used to justify low waiver prices. Our policy message is the converse: the low current waiver price significantly contributes to the cellulosic ethanol market stagnation in the context of the current biofuel policy. |
| Databáze: | OpenAIRE |
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