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Abstract

The impacts of the biofuel mandates in the EU and the US on agricultural markets and on the environment are assessed under three trade scenario assumptions using a global general equilibrium model. The study finds that while the biofuel mandates will result in important adjustments in global agricultural markets sector, it will generally be beneficial for the agricultural sector and farm producers, as well as on the environment in terms of reduced CO2 emissions. These benefits are further enhanced if the mandate policies are accompanied by liberalization in ethanol trade.

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