Economic and Environmental Impacts of Washington State Biofuel Policy Alternatives
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A computable general equilibrium model is used to analyze the effectiveness of policy alternatives
at achieving biofuel-related goals in Washington State. Policy regimes compared include
blend mandates, generally funded volumetric and CO2e (CO2 equivalent) emissions-based
tax/subsidy regimes, and revenue-neutral funded tax/subsidy regimes that use fossil fuel taxes
to fund renewable fuel subsidies. Results suggest that a revenue-neutral CO2e emissions-based
tax/subsidy is arguably the most effective single alternative for pursuing the full set of objectives
emphasized in recent Washington State legislation.