Author: Publisher:
ISBN:
Category :
Languages : en
Pages : 8
Book Description
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.
