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Enhanced environmental quality, fuel security, and economic development along with reduced prices of ethanol-gasoline blends are often used as justifications for the U.S. federal excise tax exemption on ethanol fuels. However, the possible effect of increased overall consumption of fuel in response to lower total price, mitigating the environmental and fuel security benefits, are generally not considered. Taking this price response into account, the optimal U.S. ethanol subsidy is derived.

Author(s):
Dmitry Vedenov

Ethanol production using corn grain has exploded in the Upper Midwest. This new demand for corn, and the new opportunities
for value-added processing and cattle production in rural communities, has created the best economic development
opportunity in the Corn Belt states in a generation or more. Ethanol demand has increased rapidly recently because of favorable
economics of ethanol vs. gasoline, and the need for a performance enhancer to replace MTBE (methyl tertiary-butyl ether)

Author(s):
Dennis Keeney

The model is a vehicle fuel-cycle model for transportation systems. The model provides a set of outcomes that would involve feedstock production, biorefinery production, storage and consumer demand as the complete fuel-cycle. The data is internal to the model, but might be adaptive to different biofuels specifications. This model was developed by the Energy Systems Division at Argonne National Laboratory.

Author(s):
Michael Wang
Funded from the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Bioenergy Technologies Office.