The demand for ethanol as a gasoline substitute
Abstract: This paper estimates household preferences for ethanol (E85) as a gasoline (E10) substitute. I develop a theoretical model linking the shape of the ethanol demand curve to the underlying distribution among households of willingness to pay for ethanol. I estimate the model using instrumenta...
| Publicado en: | Journal of Environmental Economics & Management Vol. 63; no. 2; pp. 151 - 169 |
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| Formato: | Artículo |
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Academic Press Inc.
Mar2012
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=71866866&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 71866866 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00950696 EEM jtl: Journal of Environmental Economics & Management issn: 00950696 maglogo: N pubinfo: dt: Mar2012 vid: 63 iid: 2 pid: 735 pub: Academic Press Inc. artinfo: ui: 71866866 10.1016/j.jeem.2011.08.002 ppf: 151 ppct: 18 formats: tig: atl: The demand for ethanol as a gasoline substitute aug: au: Anderson, Soren T. affil: Department of Economics, Michigan State University, East Lansing, MI 48824, United States Department of Food, Agricultural, and Resource Economics, Michigan State University, East Lansing, MI 48824, United States NBER, United States su: Subsidies Households Ethanol as fuel Gasoline Petroleum products Demand function Willingness to pay Premiums (Retail trade) sug: subj: Subsidies Households Petroleum and petroleum products merchant wholesalers Petroleum Refineries Petroleum Bulk Stations and Terminals Private Households All Other Petroleum and Coal Products Manufacturing Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals) Pipeline Transportation of Refined Petroleum Products Ethanol as fuel Gasoline Petroleum products Demand function Willingness to pay Premiums (Retail trade) keyword: Alternative fuels Biofuels Ethanol demand Gasoline demand Alternative fuels Biofuels Ethanol demand Gasoline demand ab: Abstract: This paper estimates household preferences for ethanol (E85) as a gasoline (E10) substitute. I develop a theoretical model linking the shape of the ethanol demand curve to the underlying distribution among households of willingness to pay for ethanol. I estimate the model using instrumental variables techniques and data from many retail fueling stations. I find that a $0.10-per-gallon increase in ethanol''s price relative to gasoline leads to a 12–16% decrease in the quantity of ethanol demanded. My findings imply that preferences for ethanol are heterogeneous and that a substantial fraction of households are willing to pay a premium for the fuel. This reduces substantially the simulated efficiency cost of an ethanol content standard, since some households choose ethanol without large subsidies, mitigating deadweight losses. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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