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Emissions from Indirect Land Use Change: Do they Matter with Fuel Market Leakages?

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  • Drabik, Dušan
  • de Gorter, Harry

Abstract

Indirect land use change, an agricultural market leakage, has been a major controversy over the Environmental Protection Agency’s (EPA) requirement for corn-ethanol to reduce greenhouse gas (GHG) emissions by 20 percent relative to gasoline it is assumed to replace. This paper shows that corn-ethanol policies generate far greater carbon leakage in the fuel market itself. Hence, corn-ethanol does not meet EPA’s threshold, regardless of ethanol policy and whether one includes emissions from land use change.

Suggested Citation

  • Drabik, Dušan & de Gorter, Harry, 2013. "Emissions from Indirect Land Use Change: Do they Matter with Fuel Market Leakages?," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 16(2), pages 1-13, September.
    • Handle: RePEc:ags:roaaec:158093
    DOI: 10.22004/ag.econ.158093
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    References listed on IDEAS

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    Cited by:

    1. Mads Greaker & Michael Hoel & Knut Einar Rosendahl, 2014. "Does a Renewable Fuel Standard for Biofuels Reduce Climate Costs?," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 1(3), pages 337-363.
    2. de Gorter, Harry & Drabik, Dusan, 2015. "The Distinct Economic Effects of the Ethanol Blend Wall, RIN Prices and Ethanol Price Premium due to the RFS," Working Papers 250020, Cornell University, Department of Applied Economics and Management.
    3. Noel, Michael D. & Roach, Travis, 2017. "Marginal reductions in vehicle emissions under a dual-blend ethanol mandate: Evidence from a natural experiment," Energy Economics, Elsevier, vol. 64(C), pages 45-54.

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