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The role of flexible biofuel policies in meeting biofuel mandates
The study uses a GTAP-BIO computable general equilibrium model to analyze the relationship between biofuel mandates and feedstock price volatility. It finds that while yield declines significantly increase prices for sugar crops, grains, and oilseeds, the impact on biofuel prices themselves is small. The authors argue that flexible policies, specifically production waivers during low-yield years, can significantly reduce feedstock price spikes, though the effectiveness of such waivers decreases if their implementation is delayed by one year.
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Document type: Research paper
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