This paper derives a method to quantify the short- to medium-run impact of biofuel on fuelmarkets, assuming that these markets are dominated by cartel of oil-rich countries, and that pricesin these countries are set to maximize the sum of domestic consumer and producer surplus, leadingto a wedge...

A key argument in the societal debate against polices tosupport biofuels is that production of these alternative fuelsmay in fact consume more energy than they generate andemit more greenhouse gases than they sequester (Fargione etal., 2008; Searchinger et al., 2008; Rajagopal and Zilberman,2007; Farrell et...