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Title: Consumer Choice of E85 Denatured Ethanol Fuel Blend: Price Sensitivity and Cost of Limited Fuel Availability

The promotion of greater use of E85, a fuel blend of 85% denatured ethanol, by flex-fuel vehicle owners is an important means of complying with the Renewable Fuel Standard 2. A good understanding of factors affecting E85 demand is necessary for effective policies that promote E85 and for developing models that forecast E85 sales in the United States. In this paper, the sensitivity of aggregate E85 demand to E85 and gasoline prices is estimated, as is the relative availability of E85 versus gasoline. The econometric analysis uses recent data from Minnesota, North Dakota, and Iowa. The more recent data allow a better estimate of nonfleet demand and indicate that the market price elasticity of E85 choice is substantially higher than previously estimated.
Authors:
 [1] ;  [2]
  1. Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States). National Transportation Research Center (NTRC)
  2. Univ. of Tennessee, Knoxville, TN (United States). Howard H. Baker Jr. Center for Public Policy; Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States). National Transportation Research Center (NTRC)
Publication Date:
OSTI Identifier:
1286692
Type:
Accepted Manuscript
Journal Name:
Transportation Research Record
Additional Journal Information:
Journal Volume: 2454; Journal ID: ISSN 0361-1981
Publisher:
National Academy of Sciences, Engineering and Medicine
Research Org:
Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)
Sponsoring Org:
USDOE Energy Information Administration (EIA)
Contributing Orgs:
Univ. of Tennessee, Knoxville, TN (United States)
Country of Publication:
United States
Language:
English
Subject:
09 BIOMASS FUELS E85 demand; alternative fuel; price elasticity; cost of fuel availability