The Impact of Ethanol Policy on Social Welfare and GHG Emissions

We develop a stylized model of fuel markets in an open economy to analyze the impact of ethanol policy on social welfare and greenhouse gas (GHG) emissions. The policies considered here include the $0.51 per gallon blender’s subsidy for ethanol and the import tariff of $0.54 per gallon on sugarcane ethanol. Our analysis shows that the combined subsidy and tariff policy decreases welfare by about $3.6 billion relative to a non intervention policy. Furthermore, there are no GHG mitigation benefits since GHG emissions show a slight increase (0.08%) when both policies are in place.


Issue Date:
2008
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/53494
PURL Identifier:
http://purl.umn.edu/53494
Total Pages:
11




 Record created 2017-04-01, last modified 2020-10-28

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