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Fueling the Automobile: An Economic Exploration of Early Adoption of Gasoline over Ethanol

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  • Dimitri Carolyn

    (USDA-ERS)

  • Effland Anne

    (USDA-ERS)

Abstract

When the automobile was developed near the beginning of the last century, it was the relatively new fuel gasoline, not the familiar ethanol that became the fuel of choice. We examine the intersections of the early development of the automobile and the petroleum industry and consider the state of the agriculture sector during the same period. Through this process, we find a series of influences, such as relative prices and alternative markets, that help to explain how in the early years of automobile development, gasoline won out over the equally likely technical alternative ethanol. We also examine the industrial relations in the automobile industry that seem to have influenced the later adoption of leaded gasoline, rather than ethanol, as a solution to the problem of engine knock.

Suggested Citation

  • Dimitri Carolyn & Effland Anne, 2007. "Fueling the Automobile: An Economic Exploration of Early Adoption of Gasoline over Ethanol," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-21, December.
    • Handle: RePEc:bpj:bjafio:v:5:y:2007:i:2:n:11
    DOI: 10.2202/1542-0485.1191
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    Cited by:

    1. Rico, Julieta A. Puerto & Mercedes, Sonia S.P. & Sauer, Ildo L., 2010. "Genesis and consolidation of the Brazilian bioethanol: A review of policies and incentive mechanisms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 1874-1887, September.
    2. Piotr Gradziuk & Krzysztof Jończyk & Barbara Gradziuk & Adrianna Wojciechowska & Anna Trocewicz & Marcin Wysokiński, 2021. "An Economic Assessment of the Impact on Agriculture of the Proposed Changes in EU Biofuel Policy Mechanisms," Energies, MDPI, vol. 14(21), pages 1-21, October.
    3. Sauer, Ildo L. & Escobar, Javier F. & da Silva, Mauro F.P. & Meza, Carlos G. & Centurion, Carlos & Goldemberg, José, 2015. "Bolivia and Paraguay: A beacon for sustainable electric mobility?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 910-925.
    4. Zhang, Zibin & Wetzstein, Michael E., 2008. "New relationships: ethanol, corn, and gasoline volatility," Risk, Infrastructure and Industry Evolution Conference, June 24-25, 2008, Berkeley, California 48718, Farm Foundation.

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