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Do green tech policies need to pass the consumer test?: The case of ethanol fuel

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  • Collantes, Gustavo
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    Abstract

    This paper investigates a question sometimes overlooked by policymakers and regulators, namely the need of a robust value proposition for green technologies to successfully enter the market. In particular, results from consumer choice models are used to develop measures of consumer acceptance of ethanol blends and flex-fuel vehicles is studied, a fuel-vehicle system that has received attention in a variety of federal and state policies. The analysis suggests that, under projected fuel prices and given the characteristics of the competing vehicle-fuel systems, consumers are unlikely to substitute ethanol blends for gasoline. The analysis also highlights the need for further research in this area.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 32 (2010)
    Issue (Month): 6 (November)
    Pages: 1235-1244

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    Handle: RePEc:eee:eneeco:v:32:y:2010:i:6:p:1235-1244

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    Web page: http://www.elsevier.com/locate/eneco

    Related research

    Keywords: Alternative fuel vehicles Transportation energy policy Consumer choice Ethanol;

    References

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    1. Rubin, Jonathan & Leiby, Paul, 2000. "An analysis of alternative fuel credit provisions of US automotive fuel economy standards," Energy Policy, Elsevier, vol. 28(9), pages 589-601, July.
    2. Turrentine, Tom & Kurani, Kenneth S, 2007. "Car buyers and fuel economy?," Institute of Transportation Studies, Working Paper Series qt56x845v4, Institute of Transportation Studies, UC Davis.
    3. Bunch, David S. & Bradley, Mark & Golob, Thomas F. & Kitamura, Ryuichi & Occhiuzzo, Gareth P., 1993. "Demand for clean-fuel vehicles in California: A discrete-choice stated preference pilot project," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(3), pages 237-253, May.
    4. Brownstone, David & Bunch, David S. & Train, Kenneth, 2000. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 34(5), pages 315-338, June.
    5. Luchansky, Matthew S. & Monks, James, 2009. "Supply and demand elasticities in the U.S. ethanol fuel market," Energy Economics, Elsevier, vol. 31(3), pages 403-410, May.
    6. Liu, Yimin & Helfand, Gloria E., 2009. "The Alternative Motor Fuels Act, alternative-fuel vehicles, and greenhouse gas emissions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(8), pages 755-764, October.
    7. Faiers, Adam & Cook, Matt & Neame, Charles, 2007. "Towards a contemporary approach for understanding consumer behaviour in the context of domestic energy use," Energy Policy, Elsevier, vol. 35(8), pages 4381-4390, August.
    8. Choo, Sangho & Mokhtarian, Patricia L., 2004. "What type of vehicle do people drive? The role of attitude and lifestyle in influencing vehicle type choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(3), pages 201-222, March.
    9. Goldberg, Pinelopi Koujianou, 1995. "Product Differentiation and Oligopoly in International Markets: The Case of the U.S. Automobile Industry," Econometrica, Econometric Society, vol. 63(4), pages 891-951, July.
    10. Amani Elobeid & Simla Tokgoz, 2006. "Removal of U.S. Ethanol Domestic and Trade Distortions: Impact on U.S. and Brazilian Ethanol Markets," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-wp427, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    11. Horne, Matt & Jaccard, Mark & Tiedemann, Ken, 2005. "Improving behavioral realism in hybrid energy-economy models using discrete choice studies of personal transportation decisions," Energy Economics, Elsevier, vol. 27(1), pages 59-77, January.
    12. Collantes, Gustavo O, 2007. "Incorporating stakeholders' perspectives into models of new technology diffusion: The case of fuel-cell vehicles," Institute of Transportation Studies, Working Paper Series qt9bm1w968, Institute of Transportation Studies, UC Davis.
    13. Collantes, Gustavo & Sperling, Daniel, 2008. "The origin of California's zero emission vehicle mandate," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(10), pages 1302-1313, December.
    14. Turrentine, Thomas S. & Kurani, Kenneth S., 2007. "Car buyers and fuel economy?," Energy Policy, Elsevier, vol. 35(2), pages 1213-1223, February.
    15. McCarthy, Patrick S. & Tay, Richard S., 1998. "New Vehicle Consumption and Fuel Efficiency: A Nested Logit Approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 34(1), pages 39-51, March.
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