The impact of trade barriers on mandated biofuel consumption in Canada

Moreover, the bigger the potential market for biofuel and the greater the comparative advantage of foreign producers relative to government supported producers in North America and Europe, the higher is the probability of trade disputes because of that government support. [...] The proportion of ethanol per unit of gasoline, ∂C% / ∂PCA E. is a function of the Canadian price of ethanol, PCA E , the Canadian price of gasoline, PCA G , and the proportion of ethanol in vehicular fuels, Policy. [...] Consumers respond positively to a decrease in the price of the composite fuel, which is a function of the prices of gasoline and ethanol. [...] The ethanol component of the composite aggregate fuel consumption increases as the ethanol price falls relative to the price of gasoline to capture the substitution between the types of gasoline at the gas-station pump. [...] The net return for ethanol plants is calculated as the sum of the price of ethanol including the incentive to producers plus the price of the co-products in ethanol production (distillers’ grains) minus the cost of the.