Modeling the Effects of U.S. Biofuel Policies on Commodity and Energy Markets

摘要: The Renewable Fuel Standard under the Energy Policy Act of 2005 redefines ethanol as a renewable domestic fuel supply, rather than just oxygenate, while American Job Creation 2004 creates biofuel tax credits and Independence Security 2007 mandates blending. We formulate an integrated economic simulation model corn/soybean production to simultaneously evaluate impacts U.S. policies on commodity energy prices. is used demonstrate that first, increases due both credit blending mandate, conventional gasoline would decline result mandate. These results are supported by current data. Therefore, there no evidence blended price be higher without mandated production. Second, corn well imports slightly blenders’ market power effects when for reduced $0.45 per gallon (beginning in January 2009), but at pump so total consumption decline.