A key objective of U.S. energy policy is to increase biofuel use by highway vehicles to 36 billion gallons per year by 2022. The Energy Independence and Security Act envisions that nearly all of this target will be met by gasohol (E10) or neat ethanol (E85). Since the market for blending ethanol with gasoline at 10% by volume will saturate at about 15 billion gallons, most of the ethanol will need to be sold in the form of E85 unless higher order blends are approved by automakers and the Environmental Protection Agency.
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One fundamental issue influencing the economic viability of the ethanol industry is consumers' demand responsiveness to both gasoline and ethanol price changes. This paper presents an alternative approach by estimating the geographic variation of price elasticity of demand for ethanol across the study area.
A presentation by Bruce Heine of Magellan Midstream Partners to the 2006 Bioeconomy Conference held at Iowa State University.
A presentation by Andrea Grant of Independent Fuel Terminal Operators Association.
This study quantifies the impact of increasing ethanol production on wholesale/retail gasoline prices employing pooled regional time-series data from January 1995 to March 2008. We find that the growth in ethanol production kept wholesale gasoline prices $0.14/gallon lower than would otherwise have been the case. The negative impact of ethanol on retail gasoline prices is found to vary considerably across regions. The Midwest region has the biggest impact at $0.28/gallon, while the Rocky Mountain region had the smallest impact at $0.07/gallon.
Production costs of bio-ethanol from sugarcane in Brazil have declined continuously over the last three decades. The aims of this study are to determine underlying reasons behind these cost reductions, and to assess whether the experience curve concept can be used to describe the development of feedstock costs and industrial production costs. The analysis was performed using average national costs data, a number of prices (as a proxy for production costs) and data on annual Brazilian production volumes.
In this article the environmental and socio-economical impacts of the production of ethanol from sugarcane in the state of São Paulo (Brazil) are evaluated. Subsequently, an attempt is made to determine to what extent these impacts are a bottleneck for a sustainable and certified ethanol production. Seventeen environmental and socio-economic areas of concern are analysed.
Since the mid-1990s there has been a growing worldwide interest in alternative transport fuels, of which ethanol is among the most promising options. This interest has in recent years gathered pace, stimulated by high oil prices and the generally perceived view that this trend is likely to accentuate in the future. The need to reduce GHG emissions is also a fundamental reason for this interest. The focus of this paper is on fuel ethanol production from sugar and starches with emphasis on short-term issues and implications for the global market.
This article investigates ethanol and its integration into the petroleum supply chain. Recent state and federal mandates require varying levels of ethanol in reformulated gasoline (RFG) and, consequently, new complexities are being introduced into what has to this point been a streamlined petroleum supply chain.
The location of ethanol plants is determined by infrastructure, product and input markets, fiscal attributes of local communities, and state and federal incentives. This empirical
analysis uses probit regression along with spatial clustering methods to analyze investment activity of ethanol plants at the county level for the lower U.S. 48 states from 2000 to 2007.
The availability of feedstock dominates the site selection decision. Other factors, such as access to navigable rivers or railroads, product markets, producer credit and excise tax
In 1997, eight E85 (85% ethanol; 15% gasoline) fuel pumps were installed at separate retail fuel stations in Minnesota to provide high-blend ethanol fuel to flexible fuel vehicle (FFV) owners. FFVs capable of utilizing gasoline, E85, or any mixture of the two, were beginning to be mass produced by vehicle manufacturers and distributed through fleet and retail sales nationwide. These state-level E85 efforts were part of larger federal and state policies and programs promoting the use of alternative transportation fuels to displace traditional gasoline and diesel fuel, which continue today.
Enhanced environmental quality, fuel security, and economic development along with reduced prices of ethanol-gasoline blends are often used as justifications for the U.S. federal excise tax exemption on ethanol fuels. However, the possible effect of increased overall consumption of fuel in response to lower total price, mitigating the environmental and fuel security benefits, are generally not considered. Taking this price response into account, the optimal U.S. ethanol subsidy is derived.
Ethanol production using corn grain has exploded in the Upper Midwest. This new demand for corn, and the new opportunities
for value-added processing and cattle production in rural communities, has created the best economic development
opportunity in the Corn Belt states in a generation or more. Ethanol demand has increased rapidly recently because of favorable
economics of ethanol vs. gasoline, and the need for a performance enhancer to replace MTBE (methyl tertiary-butyl ether)