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Is Sustainable Aviation Fuel the Future of Ethanol?

Author

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  • Swanson, Andrew

Abstract

U.S. ethanol consumption has been stagnant for almost a decade. Limitations on the blending of ethanol with gasoline and EPA discretionary waivers have prevented any large-scale demand growth for corn-starch ethanol, and cellulosic ethanol has failed to catch fire because of technological, economic, and regulatory hurdles. Low carbon fuel standards in Western states like California provide additional sources of revenue, but these markets may not provide long-term growth opportunities as the same policies provide greater subsidies for electric vehicles and other biofuels that compete with corn-based ethanol. The aviation industry, on the other hand, is an untapped market seeking alternatives to fossil fuels.

Suggested Citation

  • Swanson, Andrew, 2025. "Is Sustainable Aviation Fuel the Future of Ethanol?," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 14(39).
    • Handle: RePEc:ags:illufd:358567
    DOI: 10.22004/ag.econ.358567
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