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US biofuels subsidies and CO2 emissions: An empirical test for a weak and a strong green paradox

Kompas, Thomas; Long, Ngo Van; To, Hang; Grafton, Quentin

Description

Using energy data over the period 1981-2011 we find that US biofuels subsidies and production have provided a perverse incentive for US fossil fuel producers to increase their rate of extraction that has generated a weak green paradox. Further, in the short-run if the reduction in the CO2 emissions from a one-to-one substitution between biofuels and fossil fuels is less than 26 percent, or less than 57 percent if long run effect is taken into account, then US biofuels production is likely to...[Show more]

CollectionsANU Research Publications
Date published: 2014
Type: Journal article
URI: http://hdl.handle.net/1885/18954
Source: Energy Policy
DOI: 10.1016/j.enpol.2013.11.006

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