Mixed feedback dynamics and the USA renewable fuel standard: the roles of policy design and administrative agency

Using the case of the USA Renewable Fuel Standard (RFS), this paper contributes to theorizing regarding the factors that affect feedback dynamics of a disruptive technology. Focusing on design elements of the RFS and governance features related to its implementation, it demonstrates the resulting feedback effects on first-generation conventional biofuels and second-generation advanced biofuels. In terms of policy design, the analyses highlight the significance of the calibration of policy instruments and the incorporation of multiple policy goals into a single policy instrument. In terms of implementation procedures, the analyses affirm the significance to feedback dynamics of the regulatory capacity and discretionary authority of administrative agents as well as the influence of interest group coalitions in rulemaking. In the case of second-generation advanced biofuels, the case study also reveals the limits of policy-induced feedback in the presence of regulatory uncertainty and unfavorable financial conditions.