A carbon tax would penalize carbon intensive fuels like gasoline and shiftfuel consumption to less carbon intensive alternatives like biofuels. Since biofuelproduction competes for land with agriculture, a carbon tax could raiseland rents, divert land towards fuel production, and raise...

Biofuels have gained increasing attention as an alternative to fossil fuels for several reasons, one of which is their potential to reduce the greenhouse gas (GHG) emissions from the transportation sector. Recent studies have questioned the validity of claims about the potential for biofuels to...

The indirect land use change (ILUC) effect of biofuels has called into question the greenhouse gas (GHG) mitigation benefit of biofuels compared with that of fossil fuels. This article reviews the various economic modeling approaches being used to assess the ILUC effect and discusses the key...

Corn ethanol produced in the US and sugarcane ethanol produced in Brazil are the world’s leading sources of biofuel. Current US biofuel policies create both incentives and constraints for the import of ethanol from Brazil and together with the competitiveness and greenhouse gas intensity of...