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Blend-wall economics: Relaxing US ethanol regulations can lead to increased use of fossil fuels

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dc.contributor.author Zhang, Z en
dc.contributor.author Qiu, C en
dc.contributor.author Wetzstein, M en
dc.date.accessioned 2014-06-06T06:49:43Z
dc.date.available 2014-06-06T06:49:43Z
dc.date.issued 2010 en
dc.identifier.issn 03014215 en
dc.identifier.uri http://dx.doi.org/10.1016/j.enpol.2010.02.016 en
dc.identifier.uri http://62.217.125.90/xmlui/handle/123456789/4742
dc.subject Blend wall en
dc.subject Energy security en
dc.subject Ethanol en
dc.subject.other Blend wall en
dc.subject.other Demand response en
dc.subject.other Energy insecurity en
dc.subject.other Energy security en
dc.subject.other Ethanol blend en
dc.subject.other Fuel prices en
dc.subject.other Policy implications en
dc.subject.other US Environmental Protection Agency en
dc.subject.other Wall energy en
dc.subject.other Air pollution control en
dc.subject.other Environmental Protection Agency en
dc.subject.other Ethanol en
dc.subject.other Fossil fuels en
dc.subject.other Gasoline en
dc.subject.other Laws and legislation en
dc.subject.other Ethanol fuels en
dc.subject.other demand analysis en
dc.subject.other energy policy en
dc.subject.other energy use en
dc.subject.other ethanol en
dc.subject.other fossil fuel en
dc.subject.other petroleum en
dc.subject.other regulatory framework en
dc.subject.other United States en
dc.title Blend-wall economics: Relaxing US ethanol regulations can lead to increased use of fossil fuels en
heal.type journalArticle en
heal.identifier.primary 10.1016/j.enpol.2010.02.016 en
heal.publicationDate 2010 en
heal.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. © 2010 Elsevier Ltd.. en
heal.journalName Energy Policy en
dc.identifier.issue 7 en
dc.identifier.volume 38 en
dc.identifier.doi 10.1016/j.enpol.2010.02.016 en
dc.identifier.spage 3426 en
dc.identifier.epage 3430 en


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