Analysis: Cost of U.S. biodiesel driving demand for Brazilian ethanol

12/10/2012 | Farmdoc Daily (University of Illinois)

The demand for advanced biofuels under the Renewable Fuel Standard is behind the recent surge in Brazilian ethanol exports to the U.S., write Scott Irwin and Darrel Good, agricultural economists at the University of Illinois. Blenders can save money by using Brazilian ethanol rather than U.S. biodiesel to meet their advanced-biofuel commitments under the RFS, Irwin and Good note. However, the potential return of the $1-per-gallon biodiesel blender's tax credit could swing the balance back in favor of U.S. biodiesel and provide more room for U.S. ethanol under the E10 blend wall, the authors add.

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Farmdoc Daily (University of Illinois)

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