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Essays related to the economic effec...
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Dominguez, Juan M.
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Essays related to the economic effects of bio-fuels in the gasoline market.
Record Type:
Language materials, printed : Monograph/item
Title/Author:
Essays related to the economic effects of bio-fuels in the gasoline market./
Author:
Dominguez, Juan M.
Description:
85 p.
Notes:
Advisers: Gerard McCullough; Vernon Eidman.
Contained By:
Dissertation Abstracts International69-05A.
Subject:
Economics, Agricultural. -
Online resource:
http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3313435
ISBN:
9780549630531
Essays related to the economic effects of bio-fuels in the gasoline market.
Dominguez, Juan M.
Essays related to the economic effects of bio-fuels in the gasoline market.
- 85 p.
Advisers: Gerard McCullough; Vernon Eidman.
Thesis (Ph.D.)--University of Minnesota, 2008.
In Chapter 1, the Leontief multiproduct flexible cost function attempts to approximate the technology used by refineries and blenders. In general, this cost function satisfies the rational behavior restrictions imposed by economic theory. The estimated marginal costs are incorporated in a monopolistic competition model to calculate the virtual prices of the other products provided by the refineries and blenders under the hypothetical situation in which the reformulated gasoline is absent in the fuel markets. I have found that conventional gasoline and other product prices are greater than those of the mentioned hypothetical case. This result reflects the fact that consumers are being charged with high prices in order to have available a fuel which satisfies the Environmental Protection Agency (EPA) regulations. Finally, when all the products become perfect substitutes, i.e., the consumers are not interested in the quality of the fuels, the price differences tend to be negligibly small.
ISBN: 9780549630531Subjects--Topical Terms:
626648
Economics, Agricultural.
Essays related to the economic effects of bio-fuels in the gasoline market.
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85 p.
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Advisers: Gerard McCullough; Vernon Eidman.
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Source: Dissertation Abstracts International, Volume: 69-05, Section: A, page: .
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Thesis (Ph.D.)--University of Minnesota, 2008.
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In Chapter 1, the Leontief multiproduct flexible cost function attempts to approximate the technology used by refineries and blenders. In general, this cost function satisfies the rational behavior restrictions imposed by economic theory. The estimated marginal costs are incorporated in a monopolistic competition model to calculate the virtual prices of the other products provided by the refineries and blenders under the hypothetical situation in which the reformulated gasoline is absent in the fuel markets. I have found that conventional gasoline and other product prices are greater than those of the mentioned hypothetical case. This result reflects the fact that consumers are being charged with high prices in order to have available a fuel which satisfies the Environmental Protection Agency (EPA) regulations. Finally, when all the products become perfect substitutes, i.e., the consumers are not interested in the quality of the fuels, the price differences tend to be negligibly small.
520
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In Chapter 2, I employed the Ivaldi-Vibes algorithm to model the U.S. gasoline market under the hypothetical scenario in which the ethanol production subsidies were phased out from 1995--2005. Under this hypothetical situation, the individuals were not only willing to switch their consumption decision, but they were also willing to consider alternative modes of transportation including public transportation, biking or walking. As a result, the outside alternative market share increased about 4% and 6% and the conventional gasoline market shares increased while the ethanol blends experienced decreases across all petroleum districts. This methodology also permitted simulating the impact of this elimination on the gasoline prices. The conventional gasoline prices increased in a range between 0.12 and 1.34 percent. Finally, since different types of oxygenates are blended with the regular gasoline to compliance the EPA regulations, the reduction in the reformulated gasoline market shares implied a trade off in the demand for these oxygenates whose variation rates averaged 55.14% for the ethanol-MTBE ratio.
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http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3313435
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