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Graduate publishes article in "Green" on biofuel demand in Brazil and U.S. markets
Citation Information. Green. Volume 1, Issue 1, Pages 115–122, ISSN (Online) 1869-8778, ISSN (Print) 1869-876X, DOI: 10.1515/GREEN.2011.003, /March/2011
Abstract
The two largest producers of biofuels in the world, Brazil and U.S., both have various policy initiatives designed to meet a significant portion of their need for transportation fuels from biofuels. However, the structure of bio biofuel demand and vehicle fleets varies widely between these two economies, affecting the level of absorption of biofuels by the refiners and final consumers of each country. The relative prices of biofuels to conventional fuel prices (gasoline and diesel) determine consumers' demand not only for biofuels and but also for alternative fuel vehicles. The vehicle fleet structure, in turn, determines the ability of the transportation sector to absorb biofuels. Brazil, with its low costs of production, can sell ethanol at a competitive level with gasoline, which allows ethanol demand to expand and vehicle fleet to transform. U.S.,
on the other hand, cannot sell ethanol competitively. This limits market expansion and vehicle fleet transformation in the U.S., which, in turn, hinders its ability to achieve policy targets. With many countries taking initiatives to meet a large share of their transportation fuel needs from biofuels, the experiences of U.S. and Brazil provide valuable lessons for policy makers, where an in-depth analysis of the inter-linkages among relative prices, biofuel demand, and vehicle fleet structure prove to be crucial for successful and effective policy making. mwilliam@bard.edu
07-19-2011
This event was last updated on 07-20-2011
Meet Our Faculty
Gautam Sethi teaches environmental and natural resource economics at Bard CEP. His research includes institutional mechanisms to improve water quality in Oaxaca, Mexico, and the impact of wind farms on residential property values in the U.S.
“What I value most about Bard CEP is its ability to challenge and reshape one’s views. I am constantly challenged, by my colleagues and students, to think of the world in ways I had not hitherto, and I hope to have a similar effect on their worldview.”—Gautam Sethi, Associate Professor, Bard CEP
Monique Segarra, assistant professor of politics, teaches environmental policy analysis and climate politics. Her research focuses on the intersection of natural resource management, climate change, and human rights in the global south and the politics of water reform in Oaxaca, Mexico.
“Working with graduate students at CEP has enriched my work as a political scientist. The interdisciplinary nature of the program deepens our students’ ability to analyze and think about the policy process and how the key driver of our time, climate change and adaptation, is shaping our future policy choices.”
“Working with graduate students at CEP has enriched my work as a political scientist. The interdisciplinary nature of the program deepens our students’ ability to analyze and think about the policy process and how the key driver of our time, climate change and adaptation, is shaping our future policy choices.”
