“Low Carbon Fuel Standard: Replacing Midwest Corn Ethanol with California Biomass”

Prof.  Peter Berck,  Agriculture and Resource Economics, College of Natural Resources, UC Berkeley

The state of California Air Resources Board proposed the Low Carbon Fuel Standard which requires an increase in biofuels mixed with gasoline. A Dynamic Revenue Analysis Model, a computable general equilibrium model for making dynamic revenue estimates, was used to measure the policy’s macroeconomic effects on the California economy. We focused primarily on the replacement of Midwest corn ethanol with California forestry and agricultural biomass. The results show increases in California Personal income by an estimated $2.7 billion. The results also show an increase in Output and Exports with only a small decrease in the Agriculture Imports, which is most likely due to the fact that California is importing less Midwest corn ethanol.

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Dean, is an Environmental Economics and Policy major in the College of Natural Resources at UC Berkeley. He attended Diablo Valley College.  After successful completion of his B.S., Dean intends to work with the United Nations or a non-profit organization, to work on policy issues surrounding environmental degradation, restoration and protection around the world. Dean is the first in his family to attend college and seek a higher education.