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Competitiveness of the U.S. fuel ethanol industry

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  • Kane, S.M.
  • Reilly, J.M.

Abstract

We present and analyze new data on fuel ethanol production costs in the United States. Industry expansion over the next 5–10 yr and future industry competitiveness are evaluated. The economic potential of near-term and longer-term advances in production technology are assessed. Current ethanol production costs are shown to range from approximately 85 cents/gal to $1.20/gal. For ethanol to be competitive in the 1990s without the Federal subsidy, crude oil prices would have to rise to nearly $40/barrel or more.

Suggested Citation

  • Kane, S.M. & Reilly, J.M., 1989. "Competitiveness of the U.S. fuel ethanol industry," Energy, Elsevier, vol. 14(5), pages 259-275.
  • Handle: RePEc:eee:energy:v:14:y:1989:i:5:p:259-275
    DOI: 10.1016/0360-5442(89)90098-4
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    References listed on IDEAS

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    1. Dale Jorgenson, 1967. "The Theory of Investment Behavior," NBER Chapters, in: Determinants of Investment Behavior, pages 129-175, National Bureau of Economic Research, Inc.
    2. Robert Ferber, 1967. "Determinants of Investment Behavior," NBER Books, National Bureau of Economic Research, Inc, number ferb67-1.
    3. LeBlanc, Michael & Reilly, John, 1988. "Ethanol: Economic and Policy Tradeoffs," Agricultural Economic Reports 308040, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Winchester, Niven & Reilly, John M., 2015. "The feasibility, costs, and environmental implications of large-scale biomass energy," Energy Economics, Elsevier, vol. 51(C), pages 188-203.

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