Bandyopadhyay, Subhayu, Bhaumik, Sumon and Wall, Howard J. (2013). Biofuel subsidies and international trade. Economics and Politics, 25 (2), pp. 181-199.
Abstract
This paper explores optimal biofuel subsidies in a general equilibrium trade model. The focus is on the production of biofuels such as corn-based ethanol, which diverts corn from use as food. In the small-country case, when the tax on crude is not available as a policy option, a second-best biofuel subsidy may or may not be positive. In the large-country case, the twin objectives of pollution reduction and terms-of-trade improvement justify a combination of crude tax and biofuel subsidy for the food exporter. Finally, we show that when both nations engage in biofuel policies, the terms-of-trade effects encourage the Nash equilibrium subsidy to be positive (negative) for the food exporting (importing) nation.
Publication DOI: | https://doi.org/10.1111/ecpo.12009 |
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Divisions: | College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship College of Business and Social Sciences > Aston Business School > Aston India Foundation for Applied Research College of Business and Social Sciences > Aston Business School |
Additional Information: | This is the pre-peer reviewed version of the following article: Bandyopadhyay, S., Bhaumik, S., & Wall, H. J. (2013). Biofuel subsidies and international trade. Economics and politics, Early view., which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/ecpo.12009/abstract |
Uncontrolled Keywords: | Economics and Econometrics |
Publication ISSN: | 1468-0343 |
Last Modified: | 29 Oct 2024 12:50 |
Date Deposited: | 08 Mar 2013 11:06 |
Full Text Link: |
http://onlineli ... .12009/abstract |
Related URLs: |
http://www.scop ... tnerID=8YFLogxK
(Scopus URL) |
PURE Output Type: | Article |
Published Date: | 2013 |
Published Online Date: | 2013-02-21 |
Authors: |
Bandyopadhyay, Subhayu
Bhaumik, Sumon ( 0000-0002-4459-3659) Wall, Howard J. |