47
5.4.4 Value of CO 2 Reduction
In the previous subsection, it was shown that the most rational E10 scenario differs
for the whole world (0 cent/gallon) and the USA (3.6 cent/gallon). Those values,
however, include only economic factors and for others are omitted. Now we attempt
to introduce the value of CO 2 reduction. As it is difficult to evaluate the value of CO 2
reduction, we will apply another approach.
-4000
-3500
-3000
-2500
-2000
-1500
-1000
-500
0
500
1000
0
5
10
15
20
taxcredit (cent/gallon)
totalsum of
)
$
S
U
n
o
i
l
l
i
m
(
t
i
f
e
n
e
b
Fig. 5.7 Tax credit and
total sum of benefits
-2000.00
-1500.00
-1000.00
-500.00
0.00
500.00
0
5
10
15
20
taxcredit (cent/gallon)
)
$
S
U
n
o
i
l
l
i
m
(
t
i
f
e
n
e
b
.
S
.
U
e
h
t
Fig. 5.8 Tax credit and the
US benefit
5 Welfare Effects of the US Corn-Bioethanol Policy