Mandates, buyouts and fuel-tax rebates: Some economic aspects of biofuel policies using the UK as an example

► Many governments mandate the blending of biofuels with fossil fuels. ► Some allow firms to buyout the obligation. ► Buyouts change the economic incentives firms face. ► We use an economic framework to analyse buyouts of biofuel mandates. ► Buyouts could alleviate the impact of biofuel mandates on rising food prices.