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Pollution Whack-a-Mole: Ambient Acetaldehyde and the Introduction of E-10 Gasoline in the Northeast

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  • Steiner, Christopher

Abstract

This paper uses a complicated set of phase-ins and phase-outs of oxygenated motor fuel in the Northeast to determine whether E-10 ethanol-enhanced fuel contributes to acetaldehyde air pollution over the pre-ethanol methyl tertiary-buthyl ether (MTBE) fuel. Oil companies phased out MTBE because of groundwater pollution concerns, and now E-10 is the standard fuel in EPA reformulated gas areas. Using a difference-in-difference setup, I find a small level increase but a large percentage increase in acetaldehyde pollution with E-10. I also compute a cost of the pollution in the single-digit millions of dollars. The findings concur with many scientific papers estimating that the impact of E-10 fuel on acetaldehyde pollution is small but positive.

Suggested Citation

  • Steiner, Christopher, 2014. "Pollution Whack-a-Mole: Ambient Acetaldehyde and the Introduction of E-10 Gasoline in the Northeast," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169289, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea14:169289
    DOI: 10.22004/ag.econ.169289
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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy;

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