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Mochizuki, J. 
ORCID: https://orcid.org/0000-0003-1000-4251, Yanagida, J.F., & Coffman, M.
(2013).
Market, Welfare and Land-use Implications of Lignocellulosic Bioethanol in Hawaii.
Working Paper No. 2013-10, UHERO - The Economic Research Organization at the University of Hawaii (November 2013)
Abstract
This article examines land-use, market and welfare implications of lignocellulosic bioethanol production in Hawaii to satisfy 10% and 20% of the State's gasoline demand in line with the State's ethanol blending mandate and Alternative Fuels Standard (AFS). A static computable general equilibrium (CGE) model is used to evaluate four alternative support mechanisms for bioethanol. Namely: (i) a federal blending tax credit, (ii) a long-term purchase contract, (iii) a state production subsidy financed by a lump-sum tax and (iv) a state production subsidy financed by an ad valorem gasoline tax. We find that because Hawaii-produced bioethanol is relatively costly, all scenarios are welfare reducing for Hawaii residents: estimated between -0.14% and -0.32%. Unsurprisingly, Hawaii.s economy and its residents fair best under the federal blending tax credit scenario, with a positive impact to gross state product of $49 million. Otherwise, impacts to gross state product are negative (up to -$63 million). We additionally find that Hawaii-based bioethanol is not likely to offer substantial greenhouse gas emissions savings in comparison to imported biofuel, and as such the policy cost per tonne of emissions displaced ranges between $130 to $2,100/tonne of CO2e. The policies serve to increase the value of agricultural lands, where we estimate that the value of pasture land could increase as much as 150% in the 20% AFS scenario.
| Item Type: | Other |
|---|---|
| Uncontrolled Keywords: | Computable general equilibrium modeling; Lignocellulosic bioethanol; Land use impact; Welfare impact; Greenhouse gas emissions |
| Research Programs: | Risk & Resilience (RISK) Risk, Policy and Vulnerability (RPV) |
| Bibliographic Reference: | Working Paper No. 2013-10, UHERO - The Economic Research Organization at the University of Hawaii (November 2013) |
| Depositing User: | IIASA Import |
| Date Deposited: | 15 Jan 2016 08:49 |
| Last Modified: | 27 Aug 2021 17:23 |
| URI: | https://pure.iiasa.ac.at/10645 |
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