Low-Carbon Fuel Standards Unlikely To Be Effective: C.D. Howe Institute

    TORONTO, May 26 /CNW/ - In pursuit of greenhouse gas (GHG) emissions
reductions, policymakers in some Canadian provinces are contemplating a
low-carbon fuel standard (LCFS), a regulation that would require
transportation fuel providers to distribute a mix of fuel that, on average,
emitted a declining amount of GHG per unit of energy produced.
    In Low-Carbon Fuel Standards: Driving in the Wrong Direction C.D. Howe
Institute Policy Analyst Benjamin Dachis examines the drawbacks of the LCFS
concept and suggests that economy-wide measures would be a better way to
reduce GHG emissions. An LCFS has numerous problems:

    -   It is administratively complex, leading to obstacles in
    -   There is scientific uncertainty in the estimation of lifecycle
        emissions, owing to the difficulty of measuring all emissions from
        fuel consumption and production.
    -   There may be little net reduction in total emissions, because of
        LCFS' limited focus on the transportation sector and because it would
        apply to some jurisdictions and not others.

    Instead of an LCFS, a broad, economy wide cap-and-trade system would be
more economically efficient and more certain to reduce greenhouse gas
    For the e-brief, click: http://www.cdhowe.org/pdf/ebrief_80.pdf

For further information:

For further information: Benjamin Dachis, Policy Analyst, C.D. Howe
Institute, (416) 865-1904

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