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Anhydrous Ethanol Pricing in Economies with an Underdeveloped Biofuels Market: The Case of Mexico by Luis Armando Becerra-Pérez; Luis E. Rincón; John A. Posada-Duque is a Environmental Science article available to read on EtoBox.

What is Anhydrous Ethanol Pricing in Economies with an Underdeveloped Biofuels Market: The Case of Mexico about?

Most gasoline currently consumed in Mexico continues to be oxygenated with Methyl Tert-Butyl Ether (MTBE) despite its proven effects on the environment and human health. Hence, the existence of a regulatory framework on biofuels and various institutional efforts have not been sufficient to develop a national market for anhydrous ethanol use as biofuel. The goal of this research is twofold: one, to review and analyze the governmental actions taken to incorporate bioethanol as a gasoline oxygenate, and, two, to design a tool to estimate the bioethanol price at the Storage and Distribution Terminals of PEMEX (Mexico’s state-owned oil company). A price estimation model for bioethanol was developed through the microeconomic theory of the producer and the indifference price of a product methodology, which calculates the daily price of ethanol in the period 2015–2022; additionally, an MS Excel-based support tool was created for this analysis (namely: the Price-CEM). The analysis showed that incorporating bioethanol into the Mexican energy matrix would require policies of fiscal support for R&D, agricultural waste management and bioethanol production, as well as a new regulatory framework

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Author

Luis Armando Becerra-Pérez; Luis E. Rincón; John A. Posada-Duque

Publisher

MDPI AG

Published

2023

Language

EN

Field

Environmental Science (Social Sciences)