Economist finds that biofuels, contrary to claims, do not meaningfully affect what drivers pay at the pump
Thursday, October 10, 2013 - 06:30
in Mathematics & Economics
If you have stopped at a gas station recently, there is a good chance your auto has consumed fuel with ethanol blended into it. Yet the price of gasoline is not substantially affected by the volume of its ethanol content, according to a paper co-authored by an MIT economist. The study seeks to rebut the claim, broadly aired over the past couple of years, that widespread use of ethanol has reduced the wholesale cost of gasoline by $0.89 to $1.09 per gallon.