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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. repec:eee:ecomod:v:221:y:2010:i:15:p:1807-1818 is not listed on IDEAS
    2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, August.
    3. 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.
    4. 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.
    5. Murphy, James & Delucchi, Mark, 1998. "A Review of the Literature on the Social Cost of Motor Vehicle Use in the United States," Institute of Transportation Studies, Working Paper Series qt1tk1s936, Institute of Transportation Studies, UC Davis.
    6. Ian W. H. Parry & Margaret Walls & Winston Harrington, 2007. "Automobile Externalities and Policies," Journal of Economic Literature, American Economic Association, vol. 45(2), pages 373-399, June.
    7. Yano, Yuki & Blandford, David & Surry, Yves R., 2010. "Do Current U.S. Ethanol Policies Make Sense?," Policy Issues 93686, Agricultural and Applied Economics Association.
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    1. repec:eee:forpol:v:83:y:2017:i:c:p:99-106 is not listed on IDEAS

    More about this item

    Keywords

    Biofuels; Ethanol; Willingness-to-pay; Ecological indicators; Fuel externalities;

    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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