A model of state and federal biofuel policy: Feasibility assessment of the California Low Carbon Fuel Standard.
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| Title: | A model of state and federal biofuel policy: Feasibility assessment of the California Low Carbon Fuel Standard. |
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| Authors: | Christensen, Adam1 adam.christensen@gmail.com, Hobbs, Benjamin1 bhobbs@jhu.edu |
| Source: | Applied Energy. May2016, Vol. 169, p799-812. 14p. |
| Subjects: | Feasibility studies, Fuel, Renewable energy sources, Biomass energy, Marketing, Standards, Government policy |
| Abstract: | Biofuel policy is under near constant review at both the federal and state level. For example, as part of on-going implementation of the California Low Carbon Fuel Standard (LCFS), the California Air Resources Board has recently designed and is implementing a new cost containment mechanism as part of the compliance credit market embedded within the LCFS. This mechanism was born out of concerns that there may be a shortage of LCFS credits, which could lead to an unpredictable rise in the credit price. In general, it is important to develop appropriate mathematical tools with which to estimate the impact of policy changes on biofuel markets. Motivated by the need for such analyses, a novel regional market model is developed that quantifies several categories of impacts across different regional markets. These market impacts include policy-specific effects of California’s LCFS as well as the federal level Renewable Fuel Standard (RFS). Several scenarios are developed to highlight issues of long term LCFS feasibility; in particular, this work highlights the role that biodiesel/renewable diesel might need to play in order for the goals of the LCFS to be met. We find that biodiesel blending will need to increase dramatically within a short period of time (i.e., by 2016 all diesel fuel would need to be 20% blends) in order to generate enough LCFS credits. Additionally, this model highlights the indirect market linkages between the LCFS/RFS credit markets; certain biofuels can register under both programs and generate both credits. As a result, if attempts in the US Congressional to fully repeal the RFS are successful, it is possible that the LCFS credit price could increase more than 50%. Symmetrically, it is also true that if the LCFS program were eliminated, certain RFS credit markets would also be impacted, but to a lesser extent. [ABSTRACT FROM AUTHOR] |
| Copyright of Applied Energy is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Engineering Source |
| FullText | Text: Availability: 0 |
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| Header | DbId: egs DbLabel: Engineering Source An: 113952666 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: A model of state and federal biofuel policy: Feasibility assessment of the California Low Carbon Fuel Standard. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Christensen%2C+Adam%22">Christensen, Adam</searchLink><relatesTo>1</relatesTo><i> adam.christensen@gmail.com</i><br /><searchLink fieldCode="AR" term="%22Hobbs%2C+Benjamin%22">Hobbs, Benjamin</searchLink><relatesTo>1</relatesTo><i> bhobbs@jhu.edu</i> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Applied+Energy%22">Applied Energy</searchLink>. May2016, Vol. 169, p799-812. 14p. – Name: Subject Label: Subjects Group: Su Data: <searchLink fieldCode="DE" term="%22Feasibility+studies%22">Feasibility studies</searchLink><br /><searchLink fieldCode="DE" term="%22Fuel%22">Fuel</searchLink><br /><searchLink fieldCode="DE" term="%22Renewable+energy+sources%22">Renewable energy sources</searchLink><br /><searchLink fieldCode="DE" term="%22Biomass+energy%22">Biomass energy</searchLink><br /><searchLink fieldCode="DE" term="%22Marketing%22">Marketing</searchLink><br /><searchLink fieldCode="DE" term="%22Standards%22">Standards</searchLink><br /><searchLink fieldCode="DE" term="%22Government+policy%22">Government policy</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: Biofuel policy is under near constant review at both the federal and state level. For example, as part of on-going implementation of the California Low Carbon Fuel Standard (LCFS), the California Air Resources Board has recently designed and is implementing a new cost containment mechanism as part of the compliance credit market embedded within the LCFS. This mechanism was born out of concerns that there may be a shortage of LCFS credits, which could lead to an unpredictable rise in the credit price. In general, it is important to develop appropriate mathematical tools with which to estimate the impact of policy changes on biofuel markets. Motivated by the need for such analyses, a novel regional market model is developed that quantifies several categories of impacts across different regional markets. These market impacts include policy-specific effects of California’s LCFS as well as the federal level Renewable Fuel Standard (RFS). Several scenarios are developed to highlight issues of long term LCFS feasibility; in particular, this work highlights the role that biodiesel/renewable diesel might need to play in order for the goals of the LCFS to be met. We find that biodiesel blending will need to increase dramatically within a short period of time (i.e., by 2016 all diesel fuel would need to be 20% blends) in order to generate enough LCFS credits. Additionally, this model highlights the indirect market linkages between the LCFS/RFS credit markets; certain biofuels can register under both programs and generate both credits. As a result, if attempts in the US Congressional to fully repeal the RFS are successful, it is possible that the LCFS credit price could increase more than 50%. Symmetrically, it is also true that if the LCFS program were eliminated, certain RFS credit markets would also be impacted, but to a lesser extent. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Applied Energy is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
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| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1016/j.apenergy.2016.01.121 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 14 StartPage: 799 Subjects: – SubjectFull: Feasibility studies Type: general – SubjectFull: Fuel Type: general – SubjectFull: Renewable energy sources Type: general – SubjectFull: Biomass energy Type: general – SubjectFull: Marketing Type: general – SubjectFull: Standards Type: general – SubjectFull: Government policy Type: general Titles: – TitleFull: A model of state and federal biofuel policy: Feasibility assessment of the California Low Carbon Fuel Standard. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Christensen, Adam – PersonEntity: Name: NameFull: Hobbs, Benjamin IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 05 Text: May2016 Type: published Y: 2016 Identifiers: – Type: issn-print Value: 03062619 Numbering: – Type: volume Value: 169 Titles: – TitleFull: Applied Energy Type: main |
| ResultId | 1 |
