Holland, Stephen P.; Hughes, Jonathan E.; Knittel, … - In: American Economic Journal: Economic Policy 1 (2009) 1, pp. 106-46
A low carbon fuel standard (LCFS) seeks to reduce greenhouse gas emissions by limiting the carbon intensity of fuels. We show this decreases high carbon fuel production but increases low carbon fuel production, possibly increasing net carbon emissions. The LCFS cannot be efficient, and the best...