On the EU–U.S. Biodiesel ‘Splash & Dash' Controversy: Causes, Consequences and Policy Recommendations

This paper shows that the effects of the U.S. blender’s tax credit of $1/gallon and ‘splash & dash’ had minimal impacts on the EU biodiesel market. Reduced world oil prices and EU tax exemptions, increased rapeseed oil prices and market uncertainty are shown empirically to be the major contributors to reduced profitability of EU biodiesel production. Nevertheless, the EU imposed tariffs sometimes exceeding the tax credit in retaliation for the U.S. ‘splash & dash’ program. Instead, EU imports from the United States can be beneficial for EU taxpayers, fuel consumers as well as U.S. biodiesel producers.


Issue Date:
May 03 2010
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/61425
Total Pages:
36
JEL Codes:
F13; Q17; Q27; Q42
Note:
Replaced with revised version of paper on 10/26/10.
Series Statement:
Selected Paper
10348




 Record created 2017-04-01, last modified 2017-08-25

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