This paper derives a method to quantify the short- to medium-run impact of biofuel on fuel markets, assuming that these markets are dominated by cartel of oil-rich countries, and that prices in these countries are set to maximize the sum of domestic consumer and producer surplus, leading to a...

Biofuels have been widely promoted as an important part of the global energy mix, due to public interest in alternative energy sourcing and a potential to reduce greenhouse gas emissions. Concurrently, questions have been raised about the social and environmental costs of biofuel production....

The ethanol tariff is one of the instruments used by the government to encourage domestic ethanol production. Existing literature analyzing the market and welfare effects of the US ethanol tariff has concluded that removing the tariff would increase social surplus and reduce greenhouse gas (GHG)...

This paper first develops a partial equilibrium (PE) model to examine impacts of converting corn stover to biofuel on markets for corn and soybeans at the national market level. The PE model links gasoline, corn ethanol, dried distiller grains, corn, soybeans, and soybean meal markets in the...

In this paper, we set up a social cost minimization problem for a government. Using dynamic optimization tools, we analytically shows how exogenous parameters could affect the optimal social cost and the optimal tax credit policy path.

The study finds that the emergence and expansion of the ethanol sector was associated with a fundamental transformation of the integration of the energy and agricultural sectors. In particular, the correlation structure between crude oil and grain prices increased dramatically, becoming more...