United States Department of Transportation
i
Economic and Emissions Impacts of Renewable Fuel Goals for Aviation in the US
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2013-12-01
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[PDF-709.12 KB]
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Edition:Project 30: Metrics for an Aviation CO2 Standard
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Abstract:The US Federal Aviation Administration (FAA) has a goal that one billion gallons of renewable jet fuel is consumed by the US aviation industry each year from 2018. We examine the economic and emissions impacts of this goal using renewable fuel produced from a Hydroprocessed Esters and Fatty Acids (HEFA) process from renewable oils. Our approach employs an economy-wide model of economic activity and energy systems and a detailed partial equilibrium model of the aviation industry. If soybean oil is used as a feedstock, we find that meeting the aviation biofuel goal in 2020 will require an implicit subsidy from airlines to biofuel producers of $2.69 per gallon of renewable jet fuel. If the aviation goal can be met by fuel from oilseed rotation crops grown on otherwise fallow land, the implicit subsidy is $0.35 per gallon of renewable jet fuel. As commercial aviation biofuel consumption represents less than 2% of total fuel used by this industry, the goal has a small impact on the average price of jet fuel and carbon dioxide emissions. We also find that, under the pathways we examine, the cost per tonne of CO2 abated due to aviation biofuels is between $50 and $400.
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Content Notes:This is an open access article under the terms of the Creative Commons Attribution 3.0 Unported (CC BY 3.0) license https://creativecommons.org/licenses/by/3.0/. Please cite this article as: Niven Winchester, Dominic McConnachie, Christoph Wollersheim, Ian A. Waitz, Economic and emissions impacts of renewable fuel goals for aviation in the US, Transportation Research Part A: Policy and Practice, Volume 58, 2013, Pages 116-128, ISSN 0965-8564, https://doi.org/10.1016/j.tra.2013.10.001. (https://www.sciencedirect.com/science/article/pii/S096585641300181X)
This work is funded by the US Federal Aviation Administration Office of Environment and Energy under FAA Award Numbers: 06-C-NE-MIT, Amendment Nos. 018 and 028, and 09-C-NE-MIT, Amendment Nos. 007, 020, and 025, and DTFAWA-05-D-00012 Task Order 0009. The Joint Program on the Science and Policy of Global Change is funded by the US Department of Energy and a consortium of government and industrial sponsors (for the complete list see http://globalchange.mit.edu/sponsors/all).
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