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Agricultural and Resource Economics
Department of Agricultural Economics: Dissertations, Theses, and Student Research
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Economic Impacts Of Increased Corporate Average Fuel Economy (Cafe) Standards, Ann K. Hunter-Pirtle
Economic Impacts Of Increased Corporate Average Fuel Economy (Cafe) Standards, Ann K. Hunter-Pirtle
Department of Agricultural Economics: Dissertations, Theses, and Student Research
The Renewable Fuel Standard (RFS) mandates that U.S. transportation fuel producers blend specific volumes of ethanol and other biofuels with fossil fuels to spur U.S. biofuel production and to minimize foreign oil imports. Ethanol is more corrosive to auto engines than gasoline, and although vehicles manufactured since 2001 are approved to use up to a 15% ethanol blend (E15) (Naylor & Falcon, 2011), E10 is much more widely available. Ethanol producers therefore face a so-called blend wall at 10 percent—a maximum amount of ethanol that is usable domestically based on the demand for gasoline.
Meanwhile, gasoline demand in the U.S. …