The U.S. biodiesel use mandate and biodiesel feedstock markets

摘要: Studies of individual biodiesel feedstocks or broad approaches that lump animal fats and vegetable oils into a single aggregate straddle the true case imperfect but by no means inconsequential substitution among different users. United States biofuel policy includes use mandate rises to almost 4 hm3 2012, calling for biomass feedstock analysis recognizes complex interdependence potential competition food industrial uses. We model input markets investigate implications quantities prices with without provision disallowing made from soybean oil. Findings suggest hierarchy price effects tends be largest cheaper typically used feed purposes smallest traditionally exclusively direct consumption, cross-commodity other key economic parameters playing critical part in determining scale each case. Although sensitive exact used, our results argue against overly simplifying holding constant when considering economics particular if estimating broader impacts rising production on competing