The overturning of E.P.A.’s mandate for biofuel use and associated questions

An article in the New York Times (January 26, 2013) describes the overturning of a mandate by the Environmental Protection Agency (EPA) regarding use of “liquids made from woody crops and wastes in car a truck fuels”. But the lack of availability of cellulosic fuel has prevented it incorporation as per the federal mandate. But the mandate itself has provided financial justification for the companies that have built plants to produce cellulosic. If the mandate to create a market is dropped, as the courts say, then will that in turn end the incentive for creation of these biofuels ? Should the government instead subsidize the companies themselves through attractive loan incentives rather than use mandates to stimulate demand for their product ? How should the impact on the environment, an externality that is protected by the government, be communicated back to producers and consumers?

About aviyer2010

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