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Treguer D. and Bourgeon J.M. "Killing Two Birds with One Stone: US and EU Biofuel Programmes". Forthcoming in European Review of Agricultural Economics, 2010

Abstract: Several countries have recently launched biofuel policies to mitigate greenhouse gases (GHG) emissions from fossil fuels and secure their energy supply. The price increase due to this new demand for feedstock reduces the need for farm support programmes. Subsidy policies aimed at reaching relatively low production levels of biofuel may actually lead to a decrease in the total public outlay. Diminishing the cost of farm support programmes also induces relatively low levels of imports of agricultural feedstocks and larger subsidies for biofuel produced from domestic feedstock than from imports. Considering the enforcement of the environmental standard, we show that for high levels of biofuel production, cross-compliance provisions are a more expensive way of enforcing environmental policy than fi…ning farmers.
by Jean Christophe BUREAU last modified 16-04-2010 19:24
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