@article{Drabik:114432,
      recid = {114432},
      author = {Drabik, Dusan and de Gorter, Harry and Just, David R.},
      title = {The Implications of Alternative Biofuel Policies on Carbon  Leakage},
      address = {2011},
      number = {726-2016-49799},
      pages = {12},
      year = {2011},
      abstract = {We show carbon leakage depends on the type of biofuel  policy (tax credit versus mandate),
the domestic and  foreign gasoline supply and fuel demand elasticities, and  on consumption
and production shares of world oil markets  for the country introducing the biofuel policy.  The
components of carbon leakage – market leakage and  emissions savings – are counteracting:
carbon leakage  increases with market leakage but decreases with emissions  savings. We also
distinguish domestic and international  leakage where the latter is always positive, but
domestic  leakage can be negative with a mandate. The IPCC definition  of leakage omits
domestic leakage, resulting in biased  estimates. Leakage with a tax credit always exceeds that
of  a mandate, while the combination of a mandate and tax  credit generates lower leakage than
a tax credit alone. In  general, a gallon of ethanol (energy equivalent) is found  to replace 35
percent of a gallon of gasoline – not 100  percent as assumed by life-cycle accounting. This
means  ethanol emits 13 percent more carbon than a gallon of  gasoline if indirect land use
change (iLUC) is not included  in the estimated emissions savings effect and 43 percent  more
when iLUC is included.},
      url = {http://ageconsearch.umn.edu/record/114432},
      doi = {https://doi.org/10.22004/ag.econ.114432},
}