Main Menu

Low Carbon Fuels Standards: Market Impacts and Evidence for Retail Fuel Price Effects

Collin Cain
April 2022
Read the report here

California’s Low Carbon Fuel Standard (LCFS) Program was the first comprehensive state initiative to promote the development, production, and use of low-carbon transportation fuels. Introduced in 2011, it aimed to progressively reduce the carbon intensity of transportation fuel in the state. As other states explore the value of implementing clean fuel standards programs, there is a corresponding interest in understanding the potential costs of decarbonizing transportation fuels through such a mechanism.

In this report for the Low Carbon Fuels Coalition, Partner Collin Cain evaluates the primary drivers of transportation fuel prices in California to determine whether the state’s LCFS program has a discernible impact on retail gasoline pricing. Key findings include:

Looking forward, two important factors will likely mitigate the effects of increasingly stringent LCFS targets: the expected expansion of renewable diesel production capacity in California and the continued growth of the electric vehicle market, along with renewable electricity generation in the state.       


Jump to Page

We use cookies to optimize the performance of this site and give you the best user experience. By clicking "Accept," you agree to our use of cookies.

Necessary Cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytical Cookies

Analytical cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.