Mandating green: on the design of renewable fuel policies and cost containment mechanisms : a national center for sustainable transportation research report.

Details

• Creators:
  Lade, Gabriel E. ; Lin Lawell, C.-Y. Cynthia
• Corporate Creators:
  University of California, Davis. Department of Agricultural and Resource Economics ; University of California (System). Pavement Research Center
• Contributors:
  Yeh, Sonia
• Corporate Contributors:
  National Center for Sustainable Transportation (NCST) ; California. Air Resources Board ; United States. Department of Transportation. University Transportation Centers (UTC) Program ; California. Department of Transportation
• Subject/TRT Terms:
  • Alternate fuels
  • Carbon taxes
  • Environmental policy
  • Greenhouse gases
  • Renewable energy sources
  • Renewable fuels
  • second-best policies
  • share mandates
  • intensity standards
  • cost containment mechanisms
• Publication/ Report Number:
  NCST-201510001
• Resource Type:
  Tech Report
• Geographical Coverage:
  United States
• Corporate Publisher:
  University of California (System). Pavement Research Center
• Abstract:
  Policymakers typically favor renewable fuel mandates over taxes and cap and trade programs to ; reduce greenhouse gas emissions from the transportation sector. Because of delays in the development ; of commercially viable renewable fuels and important constraints on their use and distribution, fuel ; mandates are susceptible to sudden increases in compliance costs as policies become more stringent. We ; study the effects and efficiency of two fuel mandates, a renewable share mandate and a carbon intensity ; standard, as well as the effects of two cost containment provisions, a credit window price and a renewable ; fuel multiplier. We show using a numerical model of the US fuel market that when the mandates are ; set optimally, they can lead to modest efficiency gains over business as usual; however, when combined ; optimally with a credit window price, the efficiency of both mandates increases substantially. In contrast, ; optimally combining a mandate with a renewable fuel multiplier that indirectly relaxes the standard ; results in only modest efficiency gains over the optimal mandates alone.
  More +
• Format:
  PDF
• Funding:
  USDA National Institute of Food and Agriculture, Hatch project number CA-D-ARE-2200-H
• Download URL:
  https://rosap.ntl.bts.gov/view/dot/31125/dot_31125_DS1.pdf
• File Type:
  [PDF - 647.97 KB]
• Collection(s):
  University Transportation Centers ; US Transportation Collection
• Main Document Checksum:
  urn:sha256:03b3e8c750347cd07890aa279db6a33330967482684707d1704fa84c5475dd49