Full Title: Ethanol RIN Waiver Credits: Improving Outcomes of the Renewable Fuels Standard through a Price Containment Mechanism
Author(s): Charles River Associates
Publisher(s): Charles River Associates
Publication Date: March 1, 2018
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Description (excerpt):
Market-based policies that aim to increase a societal good, such as renewable energy, often
employ quantity targets with associated credit markets that allow policy goals to be met at
least cost. These credit markets, such as the RIN market under the Renewable Fuels
Standard (RFS), can be subject to uncertain and volatile prices when the real world turns out
different than policymakers expected. Unexpectedly high prices can lead to significant
societal costs and ultimately a failure to meet policy goals.