1 option
The Demand for Ethanol as a Gasoline Substitute / Soren T. Anderson.
- Format:
- Book
- Author/Creator:
- Anderson, Soren T.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w16371.
- NBER working paper series no. w16371
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2010.
- Summary:
- This paper estimates household preferences for ethanol as a gasoline substitute. I develop a theoretical model linking the shape of the ethanol demand curve to the distribution of price ratios at which individual households switch fuels. I estimate the model using data from many retail fueling stations. Demand is price-sensitive with a mean elasticity of 2.5-3.5. I find that preferences are heterogeneous with many households willing to pay a premium for ethanol. This reduces the simulated cost of an ethanol content standard, since some households choose ethanol without large subsidies; simulated costs are still high relative to likely environmental benefits.
- Notes:
- Print version record
- September 2010.
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