Resource information
Biofuels have been promoted to achieve energy security and as a solution to mitigatingclimate change. This research presents a framework to examine the extent to which biofuelmandates and subsidies reduce gasoline consumption and their implications for the food and fuelprices. A dynamic, multi-market equilibrium model, Biofuel and Environmental Policy AnalysisModel (BEPAM), is used to estimate the effects of these policies on cropland usage betweenfood crops and fuel crops and food and fuel prices, and to analyze the incentives provided byalternative policies for the mix of biofuels from corn and various cellulosic feedstocks that areeconomically viable over the 2007-2022 period. The provision of biofuel subsidies thataccompany the mandate under the Renewable Fuel Standard (RFS) is found to significantlychange this mix in favor of cellulosic biofuels produced from high yielding grasses and reducethe adverse impact of the RFS alone on food prices.
