EMISSIONS FROM INDIRECT LAND USE CHANGE: DO THEY MATTER WITH FUEL MARKET LEAKAGES?

Indirect land use change, an agricultural market leakage, has been a major controversy over the Environmental Protection Agency’s (EPA) requirement for corn-ethanol to reduce greenhouse gas (GHG) emissions by 20 percent relative to gasoline it is assumed to replace. This paper shows that corn-ethano...

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Bibliographic Details
Main Authors: Dušan Drabik, Harry de Gorter
Format: Article
Language:English
Published: Slovak University of Agriculture 2013-09-01
Series:Review of Agricultural and Applied Economics
Subjects:
Online Access:http://roaae.org/wp-content/uploads/2014/11/RAAE_02_2013_Drabik_deGorter.pdf
Description
Summary:Indirect land use change, an agricultural market leakage, has been a major controversy over the Environmental Protection Agency’s (EPA) requirement for corn-ethanol to reduce greenhouse gas (GHG) emissions by 20 percent relative to gasoline it is assumed to replace. This paper shows that corn-ethanol policies generate far greater carbon leakage in the fuel market itself. Hence, corn-ethanol does not meet EPA’s threshold, regardless of ethanol policy and whether one includes emissions from land use change.
ISSN:1336-9261