We show how leakage differs, depending on the biofuel policy and market conditions. Carbon leakage is shown to have two components: a market leakage effect and an emissions savings effect. We also distinguish domestic and international leakage. International leakage is always positive, but...

On-and off-farm employment offamily farm members has been a permanent phenomenum in U.S. agriculture. In this paper, a family-farm model is extended to include both on-and off-farm labor supply decisions for farm-households in the U.S. com sector. A unique empirical measure of economic welfare...

A general theory is developed to analyze the efficiency and income distribution effects of a biofuel consumer tax exemption and the interaction effects with a price contingent farm subsidy. Using U.S. policy as an example, ethanol prices rise above the gasoline price by the amount of the tax...

Leakage in the fuel market differs, depending on whether ethanol production is determined by a tax credit or consumption mandate. Two components of market leakage are distinguished: domestic and international. Leakage with both a tax credit and a consumption mandate depends on market...

With the prospect of greater uncertainty in world markets, additional progress will be required to minimize the adverse effects of domestic support policies on international trade; otherwise, turbulent global economic conditions will generate even greater uncertainty and instability in world...