TY  - RPRT
CY  - Toulouse
ID  - publications41746
UR  - http://tse-fr.eu/pub/124615
A1  - Amigues, Jean-Pierre
A1  - Chakravorty, Ujjayant
A1  - Lafforgue, Gilles
A1  - Moreaux, Michel
Y1  - 2020/08//
N2  - In order to encourage substitution of fossil fuels by cleaner renewables,
regulatory agencies have generally chosen between two types of renewable
energy standards. They have either mandated a minimum volume of renewable energy as in the case of ethanol in transport fuels, and for electricity in
Texas and Iowa. Or they have specified a minimum blend (share) of renewables in the energy supply mix as in California, Michigan and many other
states. This paper uses a simple model to compare the dynamic effects of
these two policies. We show that a volume mandate leads to a lower energy
price, induces a greater subsidy on clean energy and a smaller fossil fuel tax
than the blend mandate. The volume mandate also leads to larger cumulative renewable energy use over the time horizon. We illustrate the model
with plausible parameter values and show that the two energy mandates
lead to large differences in fossil fuel taxes and clean energy subsidies.
PB  - TSE Working Paper
T3  - TSE Working Paper
KW  - Renewable energy mandates
KW  - Fossil fuels
KW  - Energy transition
KW  - Subsidies
KW  - Carbon tax
M1  - working_paper
TI  - Comparing volume and blend renewable energy mandates under a carbon budget
AV  - public
EP  - 40
ER  -