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Title: The social inefficiency of regulating indirect land use change due to biofuels

Efforts to reduce the indirect land use change (ILUC) -related carbon emissions caused by biofuels has led to inclusion of an ILUC factor as a part of the carbon intensity of biofuels in a Low Carbon Fuel Standard. While previous research has provided varying estimates of this ILUC factor, there has been no research examining the economic effects and additional carbon savings from including this factor in implementing a Low Carbon Fuel Standard. In this article we show that inclusion of an ILUC factor in a national Low Carbon Fuel Standard led to additional abatement of cumulative emissions over 2007–2027 by 1.3 to 2.6% (0.6–1.1 billion mega-grams carbon-dioxide-equivalent (Mg CO 2e -1) compared to those without an ILUC factor, depending on the ILUC factors utilized. The welfare cost to the US of this additional abatement ranged from 61 dollars to 187 dollars Mg CO 2e -1 and was substantially greater than the social cost of carbon of $50 Mg CO 2e -1.
Authors:
 [1] ;  [2] ;  [3] ;  [4]
  1. Univ. of Illinois, Urbana, IL (United States). Inst. for Sustainability, Energy, and Environment and Dept. of Agricultural and Consumer Economics
  2. Univ. of Illinois, Urbana, IL (United States). Dept. of Agricultural and Consumer Economics
  3. Univ. of Idaho, Moscow, ID (United States). Dept. of Forest, Rangeland, and Fire Sciences
  4. Univ. of Illinois, Urbana, IL (United States). Inst. for Sustainability, Energy, and Environment and Dept. of Plant Biology
Publication Date:
Grant/Contract Number:
FG36-08GO88073; IIA-1301792
Type:
Accepted Manuscript
Journal Name:
Nature Communications
Additional Journal Information:
Journal Volume: 8; Journal Issue: 2017; Journal ID: ISSN 2041-1723
Publisher:
Nature Publishing Group
Research Org:
South Dakota State Univ., Brookings, SD (United States)
Sponsoring Org:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Bioenergy Technologies Office (EE-3B); Univ. of California, Berkeley, CA (United States); Univ. of Illinois at Urbana-Champaign, IL (United States); National Science Foundation (NSF)
Country of Publication:
United States
Language:
English
Subject:
58 GEOSCIENCES; 09 BIOMASS FUELS; Biogeochemistry; Environmental economics
OSTI Identifier:
1425823

Khanna, Madhu, Wang, Weiwei, Hudiburg, Tara W., and DeLucia, Evan H.. The social inefficiency of regulating indirect land use change due to biofuels. United States: N. p., Web. doi:10.1038/ncomms15513.
Khanna, Madhu, Wang, Weiwei, Hudiburg, Tara W., & DeLucia, Evan H.. The social inefficiency of regulating indirect land use change due to biofuels. United States. doi:10.1038/ncomms15513.
Khanna, Madhu, Wang, Weiwei, Hudiburg, Tara W., and DeLucia, Evan H.. 2017. "The social inefficiency of regulating indirect land use change due to biofuels". United States. doi:10.1038/ncomms15513. https://www.osti.gov/servlets/purl/1425823.
@article{osti_1425823,
title = {The social inefficiency of regulating indirect land use change due to biofuels},
author = {Khanna, Madhu and Wang, Weiwei and Hudiburg, Tara W. and DeLucia, Evan H.},
abstractNote = {Efforts to reduce the indirect land use change (ILUC) -related carbon emissions caused by biofuels has led to inclusion of an ILUC factor as a part of the carbon intensity of biofuels in a Low Carbon Fuel Standard. While previous research has provided varying estimates of this ILUC factor, there has been no research examining the economic effects and additional carbon savings from including this factor in implementing a Low Carbon Fuel Standard. In this article we show that inclusion of an ILUC factor in a national Low Carbon Fuel Standard led to additional abatement of cumulative emissions over 2007–2027 by 1.3 to 2.6% (0.6–1.1 billion mega-grams carbon-dioxide-equivalent (Mg CO2e-1) compared to those without an ILUC factor, depending on the ILUC factors utilized. The welfare cost to the US of this additional abatement ranged from 61 dollars to 187 dollars Mg CO2e-1 and was substantially greater than the social cost of carbon of $50 Mg CO2e-1.},
doi = {10.1038/ncomms15513},
journal = {Nature Communications},
number = 2017,
volume = 8,
place = {United States},
year = {2017},
month = {6}
}