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BLEND WALL
(2)
answer(s).
Srl
Item
1
ID:
096709
Blend-wall economics: relaxing US ethanol regulations can lead to increased use of fossil fuels
/ Zhang, Zibin; Qiu, Cheng; Wetzstein, Michael
Zhang, Zibin
Journal Article
0 Rating(s) & 0 Review(s)
Publication
2010.
Summary/Abstract
The US Environmental Protection Agency is currently considering a waiver allowing an increase in the fuel-ethanol blend limit (the "blend wall") from 10% (E10) up to 15% (E15). Justifications for this waiver are reduced vehicle fuel prices and less consumption of petroleum gasoline leading to energy security. A theoretical examination of this waiver reveals an anomaly where a relaxation of this blend wall elicits a demand response. Under a wide range of elasticities, this demand response can actually increase the consumption of petroleum gasoline and thus lead to greater energy insecurity. The economics supporting this result and associated policy implications are developed and discussed.
Key Words
Energy Security
;
Ethanol
;
Blend Wall
In Basket
Export
2
ID:
097496
Blend-wall economics: relaxing US ethanol regulations can lead to increased use of fossil fuels
/ Zhang, Zibin; Qiu, Cheng; Wetzstein, Michael
Zhang, Zibin
Journal Article
0 Rating(s) & 0 Review(s)
Publication
2010.
Summary/Abstract
The US Environmental Protection Agency is currently considering a waiver allowing an increase in the fuel-ethanol blend limit (the "blend wall") from 10% (E10) up to 15% (E15). Justifications for this waiver are reduced vehicle fuel prices and less consumption of petroleum gasoline leading to energy security. A theoretical examination of this waiver reveals an anomaly where a relaxation of this blend wall elicits a demand response. Under a wide range of elasticities, this demand response can actually increase the consumption of petroleum gasoline and thus lead to greater energy insecurity. The economics supporting this result and associated policy implications are developed and discussed.
Key Words
Energy Security
;
Ethanol
;
Blend Wall
In Basket
Export