A study by Iowa State University says the Renewable Fuel Standard brings a net positive to the U.S. economy, but fails to reduce greenhouse gas emissions globally. The study, produced in June, was released by the Renewable Fuels Association recently, highlighting the net positive to the U.S. economy. Iowa State University’s Center for Agriculture and Rural Development developed the study that found the increased cost of soybeans and corn benefits the agriculture sector and creates broader welfare gains for the U.S. However, the study found that the direct reduction from substituting biofuels for fossil fuels was outweighed elsewhere.
The study found that increasing biofuels in the fossil fuel mix reduced carbon emissions in the U.S. by about 29 million tons of carbon dioxide equivalent under the 2015 baseline, but that was more than offset by increased emissions in the rest of the world.
Source: NAFB News Service