Premium
The New Markets for Renewable Identification Numbers
Author(s) -
Thompson Wyatt,
Meyer Seth,
Westhoff Pat
Publication year - 2010
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppq021
Subject(s) - mandate , business , economics , production (economics) , biofuel , stock (firearms) , identification (biology) , microeconomics , mechanical engineering , ecology , political science , law , biology , engineering , botany
Renewable Identification Numbers (RINs) were developed to act as tracking mechanisms that ensure compliance with the U.S. biofuel use mandates legislated in 2005 and increased and adjusted to include sub‐mandates in 2007. Reviewing the rules for RIN production and use, we conclude that RIN prices will be hierarchical, and rollover provisions allow stock‐holding. We illustrate our interpretation by constructing RIN supply and use tables, and by discussing how expiring tax credits and the specific tariff raise RIN prices and mandate costs. RIN markets are critical for estimating biofuel use mandate effects on biofuel and feedstock markets and welfare.