{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,5,12]],"date-time":"2026-05-12T18:05:31Z","timestamp":1778609131276,"version":"3.51.4"},"reference-count":65,"publisher":"The Econometric Society","issue":"3","license":[{"start":{"date-parts":[[2019,1,1]],"date-time":"2019-01-01T00:00:00Z","timestamp":1546300800000},"content-version":"unspecified","delay-in-days":0,"URL":"http:\/\/creativecommons.org\/licenses\/by-nc\/4.0\/"}],"funder":[{"DOI":"10.13039\/501100001665","name":"Agence Nationale de la Recherche","doi-asserted-by":"publisher","id":[{"id":"10.13039\/501100001665","id-type":"DOI","asserted-by":"publisher"}]}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["QE"],"abstract":"<jats:p>More than<a:math xmlns:a=\"http:\/\/www.w3.org\/1998\/Math\/MathML\" display=\"inline\"><a:mn>40<\/a:mn><a:mi mathvariant=\"normal\">%<\/a:mi><\/a:math>of US grain is used for energy due to the Renewable Fuel Mandate (RFS). There are no studies of the global distributional consequences of this purely domestic policy. Using micro\u2010level survey data, we trace the effect of the RFS on world food prices and their impact on household level consumption and wage incomes in India. We first develop a partial equilibrium model to estimate the effect of the RFS on the price of selected food commodities\u2014rice, wheat, corn, sugar, and meat and dairy, which together provide almost<d:math xmlns:d=\"http:\/\/www.w3.org\/1998\/Math\/MathML\" display=\"inline\"><d:mn>70<\/d:mn><d:mi mathvariant=\"normal\">%<\/d:mi><\/d:math>of Indian food calories. Our model predicts that world prices for these commodities rise by 8\u2013<g:math xmlns:g=\"http:\/\/www.w3.org\/1998\/Math\/MathML\" display=\"inline\"><g:mn>16<\/g:mn><g:mi mathvariant=\"normal\">%<\/g:mi><\/g:math>due to the RFS. We estimate the price pass\u2010through to domestic Indian prices and the effect of the price shock on household welfare through consumption and wage incomes. Poor rural households suffer significant welfare losses due to higher prices of consumption goods, which are regressive. However, they benefit from a rise in wage incomes, mainly because most of them are employed in agriculture. Urban households also bear the higher cost of food, but do not see a concomitant rise in wages because only a small fraction of them work in food\u2010related industries. Welfare losses are greater among urban households. However, more poor people in India live in villages, so rural poverty impacts are larger in magnitude. We estimate that the mandate leads to about 25 million new poor: 21 million in rural and 4 million in the urban population.<\/jats:p>","DOI":"10.3982\/qe942","type":"journal-article","created":{"date-parts":[[2019,7,25]],"date-time":"2019-07-25T08:01:43Z","timestamp":1564041703000},"page":"1153-1193","source":"Crossref","is-referenced-by-count":7,"title":["Food for fuel: The effect of the US biofuel mandate on poverty in India"],"prefix":"10.3982","volume":"10","author":[{"given":"Ujjayant","family":"Chakravorty","sequence":"first","affiliation":[{"name":"Department of Economics, Tufts University"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Marie-H\u00e9l\u00e8ne","family":"Hubert","sequence":"additional","affiliation":[{"name":"University of Rennes, CNRS"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Beyza","family":"Ural Marchand","sequence":"additional","affiliation":[{"name":"Department of Economics, University of Alberta"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"2359","published-online":{"date-parts":[[2019]]},"reference":[{"issue":"1","key":"quan12194-bib-0001","first-page":"239","volume":"3","author":"Anderson","year":"2011","journal-title":"American Economic Journal: Applied Economics"},{"issue":"3","key":"quan12194-bib-0002","doi-asserted-by":"crossref","first-page":"667","DOI":"10.1257\/aer.99.3.667","volume":"99","author":"Bento","year":"2009","journal-title":"The American Economic Review"},{"issue":"1","key":"quan12194-bib-0003","doi-asserted-by":"crossref","first-page":"91","DOI":"10.1162\/003355304772839533","volume":"119","author":"Besley","year":"2004","journal-title":"The Quarterly Journal of Economics"},{"key":"quan12194-bib-0004","first-page":"1","volume-title":"The Impact of Macroeconomic Policies on Poverty and Income Distribution","author":"Bourguignon","year":"2008"},{"key":"quan12194-bib-0005","volume-title":"Long-Term Scenarios of Livestock-Crop-Land Use Interactions in Developing Countries","author":"Bouwman","year":"1997"},{"issue":"4","key":"quan12194-bib-0006","doi-asserted-by":"crossref","first-page":"361","DOI":"10.1111\/j.1468-0084.1991.mp53004002.x","volume":"53","author":"Boyce","year":"1991","journal-title":"Oxford Bulletin of Economics and Statistics"},{"issue":"4","key":"quan12194-bib-0007","doi-asserted-by":"crossref","first-page":"679","DOI":"10.1162\/003465305775098189","volume":"87","author":"Campa","year":"2005","journal-title":"Review of Economics and Statistics"},{"issue":"1","key":"quan12194-bib-0008","doi-asserted-by":"crossref","first-page":"121","DOI":"10.1016\/j.euroecorev.2004.12.002","volume":"50","author":"Campa","year":"2006","journal-title":"European Economic Review"},{"key":"quan12194-bib-0009","unstructured":"CBO (2014), \u201cThe renewable fuel standard: Issues for 2014 and beyond. 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