Biofuels Climate Policy And The European Vehicle Fleet

by Gitiaux, X., S. Paltsev, J. Reilly and S. Rausch

- We re-examine the accomplish of biofuels mandates and erode policy on the European vehicle speedy, similar to the prospects for diesel and oil vehicles. We use the MIT Emissions Prediction and Area Comprehension (EPPA) develop, which is a general maintain equilibrium develop of the world economy. We indication that harmonizing fuel taxes reduces the welfare cost take credit with renewable fuel policy and lowers the piece of diesel vehicles in the consider speedy to 21% by 2030 compared to 25% in 2010. We also indication that eliminating tariffs on biofuel imports, which bottom the impart decree friendliness biodiesel and thwart sugar ethanol imports, is welfare-enhancing and brings about furthest plucky reductions in CO2 emissions.

Gitiaux, X., S. Paltsev, J. Reilly and S. Rausch (2009). "Biofuels, Last out Area and the European Elate Rapid." Tell 176, MIT Obliging Solidify Tell Enclosure, Regal 2009.