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Biofuels, Climate Policy and the European Vehicle Fleet

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dc.contributor.author Rausch, Sebastian
dc.contributor.author Reilly, John M.
dc.contributor.author Paltsev, Sergey
dc.contributor.author Gitiaux, Xavier
dc.date.accessioned 2009-11-25T19:23:42Z
dc.date.available 2009-11-25T19:23:42Z
dc.date.issued 2009-08
dc.identifier.uri http://globalchange.mit.edu/pubs/abstract.php?publication_id=1984
dc.identifier.uri http://hdl.handle.net/1721.1/49856
dc.description Abstract and PDF report are also available on the MIT Joint Program on the Science and Policy of Global Change website (http://globalchange.mit.edu/). en
dc.description.abstract We examine the effect of biofuels mandates and climate policy on the European vehicle fleet, considering the prospects for diesel and gasoline vehicles. We use the MIT Emissions Prediction and Policy Analysis (EPPA) model, which is a general equilibrium model of the world economy. We expand this model by explicitly introducing current generation biofuels, by accounting for stock turnover of the vehicle fleets and by disaggregating gasoline and diesel cars. We find that biofuels mandates alone do not substantially change the share of diesel cars in the total fleet given the current structure of fuel taxes and tariffs in Europe that favors diesel vehicles. Jointly implemented changes in fiscal policy, however, can reverse the trend toward more diesel vehicles. We find that harmonizing fuel taxes reduces the welfare cost associated with renewable fuel policy and lowers the share of diesel vehicles in the total fleet to 21% by 2030 compared to 25% in 2010. We also find that eliminating tariffs on biofuel imports, which under the existing regime favor biodiesel and impede sugar ethanol imports, is welfare-enhancing and brings about further substantial reductions in CO2 emissions. en
dc.description.sponsorship This study received support from the MIT Joint Program on the Science and Policy of Global Change, which is funded by a consortium of government, industry and foundation sponsors. en
dc.language.iso en_US en
dc.publisher MIT Joint Program on the Science and Policy of Global Change en
dc.relation.ispartofseries ;Report no. 176
dc.title Biofuels, Climate Policy and the European Vehicle Fleet en
dc.type Technical Report en
dc.identifier.citation Report no. 176 en


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