A unifying methodology is presented, which jointly considers correlated Brownian motion processes with Poisson jumps in both revenue and policy. The methodology is unique in considering price and quantity as geometric Brownian motion processes with jumps following a Poisson process in revenue...

The US Environmental Protection Agency is currently considering a waiver allowing an increase in the fuel-ethanol blend limit (the "blend wall") from 10% (E10) up to 15% (E15). Justifications for this waiver are reduced vehicle fuel prices and less consumption of petroleum gasoline leading to...

Sorting out the impacts of biofuels on global agricultural commodity prices is impossible without turning to data and distinguishing between the short-run versus the long-run impacts. Using time-series prices on fuels and agricultural commodities, the aim is to investigate the long-run...

The rapid upward shift in ethanol demand has raised concerns about ethanol’s impact on the price level and volatility of agricultural commodities. The popular press attributes much of this volatility in commodity prices to a price bubble in ethanol fuel and recent deflation. Market economics...

Enhanced environmental quality, fuel security, and economic development, along with reduced prices of blended diesel, are often used as justifications for a U.S. federal excise tax exemption on biodiesel fuels. However, the possible effect of increased overall consumption of fuel in response to...

An analytical framework for assessing the optimal solar energy subsidy is developed and estimated, which takes into account the environment, health, employment, and electricity accessibility benefits. Results indicate that an optimal subsidy is positively affected by the marginal external...