Pricing of Ethanol Blends at the Pump Differs in the Short Term Compared With the Long Term

Simla Tokgoz

Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, 2024, vol. 2024

Abstract: By law, the U.S. Environmental Protection Agency (EPA) sets targets for blending renewable fuels such as ethanol with traditional transportation fuels to implement the mandates set by the Energy Independence and Security Act of 2007. If demand for blended renewable fuels is not high enough, those mandates are difficult to attain, and EPA can reduce the blending targets to below mandated levels, which has been the case recently. Prices at the pump influence whether and how often consumers select ethanol-blended fuels and, therefore, to what extent blending mandates are met. A key determinant of the price of ethanol-based transportation fuels at the retail level is the price of crude oil, and subsequently wholesale gasoline, both of which can quickly change course with sudden market changes, or shocks.

Keywords: Crop Production/Industries; Environmental Economics and Policy; Financial Economics; Sustainability (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/356194/files/P ... he%20Long%20Term.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uersaw:356194

DOI: 10.22004/ag.econ.356194

Access Statistics for this article

More articles in Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America from United States Department of Agriculture, Economic Research Service Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().