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Fuel ethanol from cane molasses in Thailand: Environmental and cost performance

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  • Nguyen, Thu Lan T.
  • Gheewala, Shabbir H.

Abstract

In the context of the world's energy crisis and environmental concerns, crop-based ethanol has emerged as an energy alternative, the use of which can help reduce oil imports as well as emissions of CO2 and other air pollutants. However, a clear disadvantage of ethanol is its high cost over gasoline under the current pricing scheme that does not include externalities. The intent of this study is to perform a life cycle analysis comparing environmental and cost performance of molasses-based E10 with those of CG. The results show that although E10 provides reduction in fossil energy use, petroleum use, CO2 and NOx emissions, its total social costs are higher than those of gasoline due to higher direct production costs and external costs for other air emissions, e.g. CH4, N2O, CO, SO2, VOC and PM10. An analysis of projection scenarios shows that technological innovations towards cleaner production help maximize ethanol's benefits whilst minimizing its limitations.

Suggested Citation

  • Nguyen, Thu Lan T. & Gheewala, Shabbir H., 2008. "Fuel ethanol from cane molasses in Thailand: Environmental and cost performance," Energy Policy, Elsevier, vol. 36(5), pages 1589-1599, May.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:5:p:1589-1599
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    1. Nguyen, Thu Lan T. & Gheewala, Shabbir H. & Garivait, Savitri, 2007. "Fossil energy savings and GHG mitigation potentials of ethanol as a gasoline substitute in Thailand," Energy Policy, Elsevier, vol. 35(10), pages 5195-5205, October.
    2. Zhang, Cheng & Han, Weijian & Jing, Xuedong & Pu, Gengqiang & Wang, Chengtao, 2003. "Life cycle economic analysis of fuel ethanol derived from cassava in southwest China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 7(4), pages 353-366, August.
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    6. Silalertruksa, Thapat & Gheewala, Shabbir H., 2010. "Security of feedstocks supply for future bio-ethanol production in Thailand," Energy Policy, Elsevier, vol. 38(11), pages 7476-7486, November.
    7. Noel, Michael D. & Roach, Travis, 2017. "Marginal reductions in vehicle emissions under a dual-blend ethanol mandate: Evidence from a natural experiment," Energy Economics, Elsevier, vol. 64(C), pages 45-54.
    8. Khatiwada, Dilip & Venkata, Bharadwaj K. & Silveira, Semida & Johnson, Francis X., 2016. "Energy and GHG balances of ethanol production from cane molasses in Indonesia," Applied Energy, Elsevier, vol. 164(C), pages 756-768.
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    12. Yang, Q. & Chen, G.Q., 2012. "Nonrenewable energy cost of corn-ethanol in China," Energy Policy, Elsevier, vol. 41(C), pages 340-347.
    13. González-García, Sara & Gasol, Carles M. & Gabarrell, Xavier & Rieradevall, Joan & Moreira, Ma Teresa & Feijoo, Gumersindo, 2010. "Environmental profile of ethanol from poplar biomass as transport fuel in Southern Europe," Renewable Energy, Elsevier, vol. 35(5), pages 1014-1023.
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