Breaching the blendwall: RINs and the market for renewable fuel
Meiselman, B
| HERO ID | 10285777 |
|---|---|
| Year | 2016 |
| Title | Breaching the blendwall: RINs and the market for renewable fuel |
| Authors | Meiselman, B |
| Publisher Text | University of Michigan |
| City | Ann Arbor, MI |
| Abstract | Two peculiar features of the market for renewable fuel are essential for understanding the welfare consequences of the Renewable Fuel Standard (RFS). First, the 10% limit on ethanol in E10 gasoline—the blendwall—makes the total renewable fuel mandate more costly. Second, the linkage among prices of different categories of renewable energy credits—RINs—makes the total renewable fuel mandate less costly. I simulate policy experiments in a model that captures both of these features. In the short run, I find that reducing carbon emissions using the RFS imposes welfare costs of more than $300 per metric ton of CO2. |
| Url | http://www-personal.umich.edu/~mdbmeis/meiselman_breaching_the_blendwall.pdf |
| Is Certified Translation | No |
| Dupe Override | No |
| Number Of Pages | 58 |
| Is Public | Yes |
| Language Text | English |
| Keyword | biofuel policy; RFS; RIN; blendwall; tradeable credit |