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Do green tech policies need to pass the consumer test?: The case of ethanol fuel

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  • Collantes, Gustavo

Abstract

This paper investigates a question sometimes overlooked by policymakers and regulators, namely the need of a robust value proposition for green technologies to successfully enter the market. In particular, results from consumer choice models are used to develop measures of consumer acceptance of ethanol blends and flex-fuel vehicles is studied, a fuel-vehicle system that has received attention in a variety of federal and state policies. The analysis suggests that, under projected fuel prices and given the characteristics of the competing vehicle-fuel systems, consumers are unlikely to substitute ethanol blends for gasoline. The analysis also highlights the need for further research in this area.

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  • Collantes, Gustavo, 2010. "Do green tech policies need to pass the consumer test?: The case of ethanol fuel," Energy Economics, Elsevier, vol. 32(6), pages 1235-1244, November.
    • Handle: RePEc:eee:eneeco:v:32:y:2010:i:6:p:1235-1244
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    Cited by:

    1. Luo, Jinjing & Moschini, GianCarlo, 2019. "Pass-through of the policy-induced E85 subsidy: Insights from Hotelling's model," Energy Economics, Elsevier, vol. 84(C).
    2. Jose J. Soto & Victor Cantillo & Julian Arellana, 2018. "Incentivizing alternative fuel vehicles: the influence of transport policies, attitudes and perceptions," Transportation, Springer, vol. 45(6), pages 1721-1753, November.
    3. de Barros, Marisa Maia & Szklo, Alexandre, 2015. "Petroleum refining flexibility and cost to address the risk of ethanol supply disruptions: The case of Brazil," Renewable Energy, Elsevier, vol. 77(C), pages 20-31.
    4. Andersson, Linda & Ek, Kristina & Kastensson, Åsa & Wårell, Linda, 2020. "Transition towards sustainable transportation – What determines fuel choice?," Transport Policy, Elsevier, vol. 90(C), pages 31-38.
    5. Li, Tongzhe & McCluskey, Jill J., 2017. "Consumer preferences for second-generation bioethanol," Energy Economics, Elsevier, vol. 61(C), pages 1-7.
    6. Stefan Walter, 2018. "The Regional Impact of Biofuel Economics," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 12(3), pages 369-386, August.
    7. Collantes, Gustavo & Kessler, Jeff & Cahill, Eric, 2017. "Structural Determinants of Electric Vehicle Market Growth," Institute of Transportation Studies, Working Paper Series qt8d15487b, Institute of Transportation Studies, UC Davis.

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