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oil price scenarios. these equations trace the changes in the mandate-driven complementary biofuels use. as the use of biofuels is driven by mandates – which in most countries are introduced in terms of percentage of the total fuel use – this means changes in fossil fuel use could change how biofuels
oil price. in order to capture the substitution effects, the use of high blend biofuels (hbbfq,c,t) in type of fossil fuel q in country c and year t is introduced as an exponential function of biofuels (cpbfq,c,t) and fossil fuel (cpfq,c,t) price ratios (as shown below). hbbfq,c,t = hs bf q,c,t*fq,c...
https://www.agri-outlook.org/about/Aglink-Cosimo-Biofuel-Documentation.pdf
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