This paper derives a method to quantify the impact of biofuels on fuel markets, assuming that these markets are dominated by a cartel of oil-rich countries and that fuel prices in these countries are significantly lower than those in the rest of the world. We identify large differences between...

Regulatory agencies are planning to implement policies targeted at mitigating greenhouse gas emissions (GHG)—e.g., low carbon fuel standards and carbon trading. Biofuels are viewed as a path to achieve these goals. Biofuels, however, pose challenges to regulators because their GHG emissions...