BIOFUELS AND LEAKAGES IN THE FUEL MARKET
| dc.creator | Drabik, Dusan | |
| dc.creator | de Gorter, Harry | |
| dc.date | 2017-04-01T20:21:25Z | |
| dc.date.accessioned | 2026-07-09T05:15:12Z | |
| dc.description | Leakage in the fuel market differs, depending on whether ethanol production is determined by a tax credit or consumption mandate. Two components of market leakage are distinguished: domestic and international. Leakage with both a tax credit and a consumption mandate depends on market elasticities and consumption/production shares, with the former having a bigger impact. Leakage is also more sensitive to changes in market supply and demand elasticities in the country not introducing biofuels. Although positive with a tax credit, market leakage can be negative with a consumption mandate, meaning that one gallon of ethanol can replace more than a gallon of gasoline. We also show that being a small country biofuels producer does not necessarily mean that leakage for this country is 100 percent. Our numerical estimates show that one gallon of ethanol replaces approximately 0.2-0.3 gallons of gasoline in the U.S. | |
| dc.identifier | doi:10.22004/ag.econ.91265 | |
| dc.identifier | https://ageconsearch.umn.edu/record/91265/files/deGorter_et_al._IATRC_Summer_2010.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/91265 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/561099 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/91265 | |
| dc.title | BIOFUELS AND LEAKAGES IN THE FUEL MARKET | |
| dc.type | Text |