This analysis estimates the cost of selected oil and biomass supply shocks for producers and consumers in the light-duty vehicle fuel market under various supply chain configurations using a mathematical programing model, BioTrans. The supply chain configurations differ by whether they include selected flexibility levers: multi-feedstock biorefineries; advanced biomass logistics; and the ability to adjust ethanol content of low-ethanol fuel blends, from E10 to E15 or E05. The simulated scenarios explore market responses to supply shocks including substitution between gasoline and ethanol, substitution between different sources of ethanol supply, biorefinery capacity additions or idling, and price adjustments. Welfare effects for the various market participants represented in BioTrans are summarized into a net shock cost measure. As oil accounts for a larger fraction of fuel by volume, its supply shocks are costlier than biomass supply shocks. Corn availability and the high cost of adding biorefinery capacity limit increases in ethanol use during gasoline price spikes. During shocks that imply sudden decreases in the price of gasoline, the renewable fuel standard (RFS) biofuel blending mandate limits the extent to which flexibility can be exercised to reduce ethanol use. The selected flexibility levers are most useful in response to cellulosic biomass supply shocks.


    Access

    Download

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Cost of Oil and Biomass Supply Shocks under Different Biofuel Supply Chain Configurations


    Additional title:

    Transportation Research Record: Journal of the Transportation Research Board


    Contributors:


    Publication date :

    2018-04-04




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English



    Port supply chain integration: analyzing biofuel supply chains

    Stevens, Leonie C.E. / Vis, Iris F.A. | Taylor & Francis Verlag | 2016


    Woody Biomass Supply, Economics, and Biofuel Policy

    Rubin, Jonathan / Neupane, Binod / Whalley, Stephanie et al. | Transportation Research Record | 2015


    Sustainable Biofuel Supply Chain Planning and Management under Uncertainty

    Xie, Fei / Huang, Yongxi | Transportation Research Record | 2013