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Relationship between ethanol and gasoline: AIDS approach

Listed author(s):
  • Tenkorang, Frank
  • Dority, Bree L.
  • Bridges, Deborah
  • Lam, Eddery
Registered author(s):

    Ethanol production in the United States has increased significantly due to government support, which has begun to dwindle. Ethanol now seems to compete with gasoline for vehicle fuel but because ethanol is mostly sold as a blend, gasoline and ethanol could be complementary fuel sources. The study investigates the true relationship between these fuels since it has policy implications. Results of LA/AIDS estimation show the two fuels were substitutes before the rapid expansion of ethanol production but have become complements overtime due to increasing share of ethanol in fuel consumption.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0140988315001425
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    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 50 (2015)
    Issue (Month): C ()
    Pages: 63-69

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    Handle: RePEc:eee:eneeco:v:50:y:2015:i:c:p:63-69
    DOI: 10.1016/j.eneco.2015.04.019
    Contact details of provider: Web page: http://www.elsevier.com/locate/eneco

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