EBI Personnel Directory Ye, Fanglin
The program is creating a comprehensive framework to analyze the socioeconomic, biophysical, and environmental impacts of biofuel production at an economy-wide level, while incorporating detailed spatial heterogeneity at a local and regional scale. This framework has the flexibility to be modified as new knowledge and insights emerge from the field and laboratory studies. The analysis provides policy makers and analysts with a scientific basis and a methodology to analyze the impacts of a range of public policies, including gasoline taxes, biofuel subsidies, carbon payments, and reduction in tariffs on imported biofuels.
Investors in cellulosic biofuel processing face high capital and start-up costs, particularly the early entrants to the industry. These costs are expected to decline significantly after production begins and the technology matures through learning and resulting knowledge spillovers. Moving towards commercialization of cellulosic fuel production will require providing the necessary economic, legal, and/or political incentives for 1) fuel producers to make significant capital investments in building processing facilities, and 2) farmers to begin growing feedstocks to supply the processing facilities. The objectives of this project are to analyze loan guarantee programs, design innovative insurance programs, and evaluate the potential for private market derivatives which would provide potential refiners with funding sources and risk management tools to encourage investment in cellulosic processing capacity. Specifically, government loan guarantees, insurance programs, and private market derivative instruments will be analyzed. These alternatives will be compared in terms of total public and private cost to achieve targeted production capacity levels for the industry to meet RFS2 mandate levels within the next 5 years.