Economist Says Iowa Biodiesel Mandate Wrong Approach
Summary
Economist Wayne Newkirk, Ph.D., a longtime Drake University professor and president of Economic and Financial Consulting, reviewed and addressed the effects of a state mandate on demand, prices, employment and tax receipts, as well as the impact to fuel marketers and retailers.Iowans for Consumer Fuel Choice (ICFC) today released an economic study analyzing the impact of a statewide biodiesel mandate, as proposed in Senate File 464 and currently being considered by the Iowa State Legislature.Economist Wayne Newkirk, Ph.D., a longtime Drake University professor and president of Economic and Financial Consulting, reviewed and addressed the effects of a state mandate on demand, prices, employment and tax receipts, as well as the impact to fuel marketers and retailers.“Since B5 blended biodiesel is not readily available at major Iowa racks, it’s difficult to pin down the exact price impact a mandate would have here.Newkirk points out that this premium does not take into consideration the loss of the $1.00 Federal blender’s credit, which would increase the premium paid for B5 to nearly 12.5 cents on average.“There is no logical reason to believe an Iowa biodiesel mandate would deliver any different result than what we’ve witnessed in Minnesota,” said Dawn Carlson, spokesperson for ICFC and president and chief executive officer for Petroleum Marketers and Convenience Stores of Iowa.