The Economics of Canada Biofuel Policies
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Most developed countries and several developing ones have renewable policies for motor fuels. In Canada, federal regulation has required minimum renewable contents in gasoline and diesel since 2010. On average, gasoline and diesel produced or imported into Canada must have a renewable content of at least 5% and 2%, respectively. Fuel producers meet these requirements by blending ethanol into gasoline and biodiesel into diesel. Many provinces have blend mandates that exceed the federal requirements. Saskatchewan and Manitoba mandate 7.5% and 8.5%, respectively, of ethanol in gasoline. British Columbia and Ontario mandate 4% of biodiesel in diesel fuel.
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This article is published as Pouliot, S. “The Economics of Canada Biofuel Policies” Fare Share Special Issue: National Food Policy Issue (2018): 8-9. Posted with permission.