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Integrating life-cycle assessment and choice analysis for alternative fuel valuation

Author

Listed:
  • Winden, Matthew
  • Cruze, Nathan
  • Haab, Tim
  • Bakshi, Bhavik

Abstract

This study monetizes the environmental damage and human health risk externalities associated with the life-cycle production and use of ethanol biofuels from corn-based and cellulosic feedstocks. An integrated economic-environmental assessment framework couples the measured emission impacts from the fuels with individuals' preferences regarding each fuel's externalities. This framework allows the welfare values associated with gasoline and ethanol's externalities to be derived and compared. The results of the study reveal that the production and consumption of corn starch ethanol produce declines in environmental and health outcomes of $1.23 per gallon relative to gasoline for an 85% blend. Depending on the feedstock source, cellulosic based ethanol blends produce modest gains in environmental and health outcomes valued at between $0.04 and $0.06 per gallon relative to gasoline.

Suggested Citation

  • Winden, Matthew & Cruze, Nathan & Haab, Tim & Bakshi, Bhavik, 2014. "Integrating life-cycle assessment and choice analysis for alternative fuel valuation," Ecological Economics, Elsevier, vol. 102(C), pages 83-93.
    • Handle: RePEc:eee:ecolec:v:102:y:2014:i:c:p:83-93
    DOI: 10.1016/j.ecolecon.2014.03.008
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    References listed on IDEAS

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    1. Baral, Anil & Bakshi, Bhavik R., 2010. "Emergy analysis using US economic input–output models with applications to life cycles of gasoline and corn ethanol," Ecological Modelling, Elsevier, vol. 221(15), pages 1807-1818.
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    5. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427.
    6. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers Archive 12881, Iowa State University, Department of Economics.
    7. Kusiima, Jamil M. & Powers, Susan E., 2010. "Monetary value of the environmental and health externalities associated with production of ethanol from biomass feedstocks," Energy Policy, Elsevier, vol. 38(6), pages 2785-2796, June.
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    Cited by:

    1. Baral, Nabin & Rabotyagov, Sergey, 2017. "How much are wood-based cellulosic biofuels worth in the Pacific Northwest? Ex-ante and ex-post analysis of local people's willingness to pay," Forest Policy and Economics, Elsevier, vol. 83(C), pages 99-106.
    2. Vance, C. & Sweeney, J. & Murphy, F., 2022. "Space, time, and sustainability: The status and future of life cycle assessment frameworks for novel biorefinery systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    3. Linzenich, Anika & Arning, Katrin & Bongartz, Dominik & Mitsos, Alexander & Ziefle, Martina, 2019. "What fuels the adoption of alternative fuels? Examining preferences of German car drivers for fuel innovations," Applied Energy, Elsevier, vol. 249(C), pages 222-236.

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    More about this item

    Keywords

    Biofuels; Ethanol; Willingness-to-pay; Ecological indicators; Fuel externalities;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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