Greenhouse Gas Reductions under Low Carbon Fuel Standards?
- UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
- Stephen P. Holland, Associate Professor (Creator)
- Institution
- The University of North Carolina at Greensboro (UNCG )
- Web Site: http://library.uncg.edu/
Abstract: A low carbon fuel standard (LCFS) seeks to reduce greenhouse gas
emissions by limiting the carbon intensity of fuels. We show this
decreases high carbon fuel production but increases low carbon fuel
production, possibly increasing net carbon emissions. The LCFS
cannot be efficient, and the best LCFS may be nonbinding. We simulate
a national LCFS on gasoline and ethanol. For a broad parameter
range, emissions decrease, energy prices increase, abatement
costs are large ($80–$760 billion annually), and average abatement
costs are large ($307–$2,272 per CO2 metric ton). A cost effective
policy has much lower average abatement costs ($60–$868). (JEL
Q54, Q58)
Greenhouse Gas Reductions under Low Carbon Fuel Standards?
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Created on 9/10/2010
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Additional Information
- Publication
- American Economic Journal: Economic Policy 2009, 1:1, 106–146
- Language: English
- Date: 2009
- Keywords
- Carbon regulation, Greenhouse gas, Carbon emissions reduction, Fuel standards