Technology adoption under US biofuel policies: do producers, consumers or taxpayers benefit?

Abstract

The beneficiaries of technology adoption in agriculture and biofuel markets in the United States are heavily influenced by biofuel policies and market context. Biofuel mandates, one of the key pillars of domestic biofuel policies, may significantly alter the elasticity of demand for biofuels as well as the derived demand for maize used to produce a significant share of ethanol in the United States. Using a stochastic agriculture and biofuel model, it is determined that market context relative to biofuel policy is critically important in understanding the winners and losers from technology adoption. The results for both feedstock and biofuel producers as well as the US tax payers are used to discuss implications for the analysis of EU biofuel policies. , Oxford University Press.