IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v105y2017icp93-97.html
   My bibliography  Save this article

Fuel carbon intensity standards may not mitigate climate change

Author

Listed:
  • Plevin, Richard J.
  • Delucchi, Mark A.
  • O’Hare, Michael

Abstract

To mitigate the climate change effects of transportation, the US states of California and Oregon, the Canadian province of British Columbia, and the European Union have implemented regulations to reduce the life cycle greenhouse gas (GHG) emissions intensity of transport fuel, commonly referred to as "carbon intensity", or CI. In this article, we unpack the theory and practice of fuel CI standards, examining claims regarding climate-change mitigation. We show that these standards do not reliably mitigate climate change because estimates of GHG reductions rely primarily on models that are not designed to estimate changes in emissions and climate impacts. Some regulations incorporate models that estimate a subset of changes in emissions, but the models must project changes in global markets over decades, and there is little agreement about the best model structure or parameter values. Since multiple models and projections may be equally plausible, fuel CI is inevitably subjective and unverifiable. We conclude that regulating or taxing observable emissions would more reliably achieve emission reduction.

Suggested Citation

  • Plevin, Richard J. & Delucchi, Mark A. & O’Hare, Michael, 2017. "Fuel carbon intensity standards may not mitigate climate change," Energy Policy, Elsevier, vol. 105(C), pages 93-97.
  • Handle: RePEc:eee:enepol:v:105:y:2017:i:c:p:93-97
    DOI: 10.1016/j.enpol.2017.02.037
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142151730112X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2017.02.037?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sperling, Daniel & Farrell, Alexander, 2007. "A Low-Carbon Fuel Standard for California, Part 2: Policy Analysis," Institute of Transportation Studies, Working Paper Series qt5hv693r2, Institute of Transportation Studies, UC Davis.
    2. Sperling, Daniel & Yeh, Sonia, 2010. "Toward a global low carbon fuel standard," Transport Policy, Elsevier, vol. 17(1), pages 47-49, January.
    3. Smeets, Edward & Tabeau, Andrzej & van Berkum, Siemen & Moorad, Jamil & van Meijl, Hans & Woltjer, Geert, 2014. "The impact of the rebound effect of the use of first generation biofuels in the EU on greenhouse gas emissions: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 393-403.
    4. Witcover, Julie & Yeh, Sonia & Sperling, Daniel, 2013. "Policy options to address global land use change from biofuels," Energy Policy, Elsevier, vol. 56(C), pages 63-74.
    5. John M. DeCicco, 2015. "The liquid carbon challenge: evolving views on transportation fuels and climate," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 4(1), pages 98-114, January.
    6. Mosnier, A. & Havlík, P. & Valin, H. & Baker, J. & Murray, B. & Feng, S. & Obersteiner, M. & McCarl, B.A. & Rose, S.K. & Schneider, U.A., 2013. "Alternative U.S. biofuel mandates and global GHG emissions: The role of land use change, crop management and yield growth," Energy Policy, Elsevier, vol. 57(C), pages 602-614.
    7. Lade, Gabriel E. & Lin Lawell, C.-Y. Cynthia, 2015. "The design and economics of low carbon fuel standards," Research in Transportation Economics, Elsevier, vol. 52(C), pages 91-99.
    8. Farrell, Alexander E. & Sperling, Dan, 2007. "A Low-Carbon Fuel Standard for California, Part 2: Policy Analysis," Institute of Transportation Studies, Working Paper Series qt8ng2h3x7, Institute of Transportation Studies, UC Davis.
    9. Stephen P. Holland & Jonathan E. Hughes & Christopher R. Knittel, 2009. "Greenhouse Gas Reductions under Low Carbon Fuel Standards?," American Economic Journal: Economic Policy, American Economic Association, vol. 1(1), pages 106-146, February.
    10. Richardson, David B., 2013. "Electric vehicles and the electric grid: A review of modeling approaches, Impacts, and renewable energy integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 247-254.
    11. John DeCicco, 2013. "Biofuel’s carbon balance: doubts, certainties and implications," Climatic Change, Springer, vol. 121(4), pages 801-814, December.
    12. Farrell, Alexander & Sperling, Daniel, 2007. "A Low-Carbon Fuel Standard for California, Part 2: Policy Analysis," Institute of Transportation Studies, Working Paper Series qt8xv635dc, Institute of Transportation Studies, UC Davis.
    13. Menten, Fabio & Tchung-Ming, Stéphane & Lorne, Daphné & Bouvart, Frédérique, 2015. "Lessons from the use of a long-term energy model for consequential life cycle assessment: The BTL case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 942-960.
    14. Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2005. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521023894.
    15. Yeh, Sonia & Sperling, Daniel, 2010. "Low carbon fuel standards: Implementation scenarios and challenges," Energy Policy, Elsevier, vol. 38(11), pages 6955-6965, November.
    16. Yang, Christopher, 2013. "Fuel electricity and plug-in electric vehicles in a low carbon fuel standard," Energy Policy, Elsevier, vol. 56(C), pages 51-62.
    17. R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 24(1), pages 11-32.
    18. Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2000. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521660839.
    19. Tara W. Hudiburg & WeiWei Wang & Madhu Khanna & Stephen P. Long & Puneet Dwivedi & William J. Parton & Melannie Hartman & Evan H. DeLucia, 2016. "Impacts of a 32-billion-gallon bioenergy landscape on land and fossil fuel use in the US," Nature Energy, Nature, vol. 1(1), pages 1-7, January.
    20. James Bushnell & Carla Peterman & Catherine Wolfram, 2008. "Local Solutions to Global Problems: Climate Change Policies and Regulatory Jurisdiction," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 2(2), pages 175-193, Summer.
    21. Stephen P. Holland, Jonathan E. Hughes, Christopher R. Knittel, Nathan C. Parker, 2015. "Unintended Consequences of Carbon Policies: Transportation Fuels, Land-Use, Emissions, and Innovation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    22. Jacobson, Mark Z. & Delucchi, Mark A., 2011. "Providing all global energy with wind, water, and solar power, Part I: Technologies, energy resources, quantities and areas of infrastructure, and materials," Energy Policy, Elsevier, vol. 39(3), pages 1154-1169, March.
    23. John DeCicco, 2012. "Biofuels and carbon management," Climatic Change, Springer, vol. 111(3), pages 627-640, April.
    24. Robert H. Beach & Yuquan W. Zhang & Bruce A. Mccarl, 2012. "Modeling Bioenergy, Land Use, And Ghg Emissions With Fasomghg: Model Overview And Analysis Of Storage Cost Implications," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-34.
    25. Peter J. May, 2011. "Performance-based Regulation," Chapters, in: David Levi-Faur (ed.), Handbook on the Politics of Regulation, chapter 27, Edward Elgar Publishing.
    26. Irene Scher & Jonathan Koomey, 2011. "Is accurate forecasting of economic systems possible?," Climatic Change, Springer, vol. 104(3), pages 473-479, February.
    27. Rajagopal, D. & Plevin, Richard J., 2013. "Implications of market-mediated emissions and uncertainty for biofuel policies," Energy Policy, Elsevier, vol. 56(C), pages 75-82.
    28. Stavins, Robert, 1998. "Market-Based Environmental Policies," RFF Working Paper Series dp-98-26, Resources for the Future.
    29. Napolitano, Sam & Schreifels, Jeremy & Stevens, Gabrielle & Witt, Maggie & LaCount, Melanie & Forte, Reynaldo & Smith, Kenon, 2007. "The U.S. Acid Rain Program: Key Insights from the Design, Operation, and Assessment of a Cap-and-Trade Program," The Electricity Journal, Elsevier, vol. 20(7), pages 47-58.
    30. Madhu Khanna & Christine L. Crago, 2012. "Measuring Indirect Land Use Change with Biofuels: Implications for Policy," Annual Review of Resource Economics, Annual Reviews, vol. 4(1), pages 161-184, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eirik Ogner Jåstad & Torjus Folsland Bolkesjø & Per Kristian Rørstad & Atle Midttun & Judit Sandquist & Erik Trømborg, 2021. "The Future Role of Forest-Based Biofuels: Industrial Impacts in the Nordic Countries," Energies, MDPI, vol. 14(8), pages 1-24, April.
    2. Bhardwaj, Chandan & Axsen, Jonn & Kern, Florian & McCollum, David, 2020. "Why have multiple climate policies for light-duty vehicles? Policy mix rationales, interactions and research gaps," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 309-326.
    3. John M. DeCicco, 2017. "Author’s response to commentary on “Carbon balance effects of U.S. biofuel production and use”," Climatic Change, Springer, vol. 144(2), pages 123-129, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yeh, Sonia & Witcover, Julie & Lade, Gabriel E. & Sperling, Daniel, 2016. "A review of low carbon fuel policies: Principles, program status and future directions," Energy Policy, Elsevier, vol. 97(C), pages 220-234.
    2. Huseynov, Samir & Palma, Marco A., 2018. "Does California’s LCFS Reduce CO2 Emissions?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274200, Agricultural and Applied Economics Association.
    3. Lade, Gabriel E. & Lin Lawell, C.-Y. Cynthia, 2015. "The design and economics of low carbon fuel standards," Research in Transportation Economics, Elsevier, vol. 52(C), pages 91-99.
    4. Axsen, Jonn & Wolinetz, Michael, 2023. "What does a low-carbon fuel standard contribute to a policy mix? An interdisciplinary review of evidence and research gaps," Transport Policy, Elsevier, vol. 133(C), pages 54-63.
    5. Derek Lemoine, 2017. "Escape from Third-Best: Rating Emissions for Intensity Standards," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 789-821, August.
    6. Yeh, Sonia & Sperling, Daniel, 2010. "Low carbon fuel standards: Implementation scenarios and challenges," Energy Policy, Elsevier, vol. 38(11), pages 6955-6965, November.
    7. Holland, Stephen P., 2012. "Emissions taxes versus intensity standards: Second-best environmental policies with incomplete regulation," Journal of Environmental Economics and Management, Elsevier, vol. 63(3), pages 375-387.
    8. Bhardwaj, Chandan & Axsen, Jonn & Kern, Florian & McCollum, David, 2020. "Why have multiple climate policies for light-duty vehicles? Policy mix rationales, interactions and research gaps," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 309-326.
    9. Wang, Banban & Pizer, William A. & Munnings, Clayton, 2022. "Price limits in a tradable performance standard," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    10. Bushnell, James & Chen, Yihsu, 2012. "Allocation and leakage in regional cap-and-trade markets for CO2," Resource and Energy Economics, Elsevier, vol. 34(4), pages 647-668.
    11. Rubin, Jonathan & Leiby, Paul N., 2013. "Tradable credits system design and cost savings for a national low carbon fuel standard for road transport," Energy Policy, Elsevier, vol. 56(C), pages 16-28.
    12. Gabriel E Lade & C -Y Cynthia Lin Lawell & Aaron Smith, 2018. "Policy Shocks and Market-Based Regulations: Evidence from the Renewable Fuel Standard," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(3), pages 707-731.
    13. John M. DeCicco & Danielle Yuqiao Liu & Joonghyeok Heo & Rashmi Krishnan & Angelika Kurthen & Louise Wang, 2016. "Carbon balance effects of U.S. biofuel production and use," Climatic Change, Springer, vol. 138(3), pages 667-680, October.
    14. Axsen, John & Kurani, Kenneth S. & McCarthy, Ryan & Yang, Christopher, 2010. "Plug-in Hybrid Vehicle GHG Impacts in California: Integrating Consumer-Informed Recharge Profiles with an Electricity-Dispatch Model," Institute of Transportation Studies, Working Paper Series qt9zg6g60t, Institute of Transportation Studies, UC Davis.
    15. Richard Schmalensee & Robert N. Stavins, 2017. "Lessons Learned from Three Decades of Experience with Cap and Trade," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(1), pages 59-79.
    16. John M. DeCicco, 2018. "Methodological Issues Regarding Biofuels and Carbon Uptake," Sustainability, MDPI, vol. 10(5), pages 1-15, May.
    17. John M. DeCicco, 2017. "Author’s response to commentary on “Carbon balance effects of U.S. biofuel production and use”," Climatic Change, Springer, vol. 144(2), pages 123-129, September.
    18. Gilbert E. Metcalf, 2009. "Market-Based Policy Options to Control U.S. Greenhouse Gas Emissions," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 5-27, Spring.
    19. Axsen, Jonn & Kurani, Kenneth S. & McCarthy, Ryan & Yang, Christopher, 2011. "Plug-in hybrid vehicle GHG impacts in California: Integrating consumer-informed recharge profiles with an electricity-dispatch model," Energy Policy, Elsevier, vol. 39(3), pages 1617-1629, March.
    20. Tittmann, P.W. & Parker, N.C. & Hart, Q.J. & Jenkins, B.M., 2010. "A spatially explicit techno-economic model of bioenergy and biofuels production in California," Journal of Transport Geography, Elsevier, vol. 18(6), pages 715-728.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:105:y:2017:i:c:p:93-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.