Primer on Motor Fuel Excise Taxes and the Role of Alternative Fuels and Energy Efficient Vehicles

Schroeder, Alex

doi:10.2172/1214966

Cited by 2 publications

(3 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…14 Other variables of interest reported in the status quo column of table 3 also include motor fuel taxes and RIN prices. Concerning motor fuel taxes, we note at this juncture that these taxes, in virtually all cases, are levied on volume basis (Schroeder, 2015), a feature that we have maintained in our structural model. For gasoline, the assumed per-unit tax is the sum of the federal tax (¢18.40/gallon) and a weighted average of state taxes (¢26.49/gallon).…”

Section: Other Baseline Variablesmentioning

confidence: 76%

See 1 more Smart Citation

The Renewable Fuel Standard in Competitive Equilibrium: Market and Welfare Effects

Moschini

Lapan

2017

American J Agri Economics

View full text Add to dashboard Cite

We construct a tractable multi-market equilibrium model designed to evaluate alternative biofuel policies. The model integrates the US agricultural sector with the energy sector and it explicitly considers both US ethanol and biodiesel production. The model provides a structural representation of the renewable fuel standard (RFS) policies, and it uses the arbitrage conditions defining the core value of renewable identification number (RIN) prices to identify the relevant competitive equilibrium conditions. The model is parameterized, based on elasticities and technical coefficients from the literature, to represent observed 2015 data. The model is simulated to analyze alternative scenarios, including: repeal of the RFS; projected 2022 RFS mandates; and, optimal (second best) mandates. The results confirm that the current RFS program considerably benefits the agriculture sector, but also leads to overall welfare gains for the United States (mostly via beneficial terms of trade effects). Implementation of projected 2022 mandates, which would require further expansion of biodiesel production, would lead to a considerable welfare loss (relative to 2015 mandate levels). Constrained (second-best) optimal mandates would entail more corn-based ethanol and less biodiesel than currently mandated.

show abstract

Section: Other Baseline Variablesmentioning

confidence: 76%

“…The reason for this effect has to do with the impact of transportation fuel taxes. Consistent with the institutional setup, we have modeled these motor fuel taxes as levied on a volume basis (Schroeder, 2015). And, under the presumption that consumers care about miles traveled, fuel demand accounts for the different energy content of biofuels.…”

Section: Resultsmentioning

confidence: 99%

The Renewable Fuel Standard in Competitive Equilibrium: Market and Welfare Effects

Moschini

Lapan

2017

American J Agri Economics

View full text Add to dashboard Cite

show abstract

“…Perhaps even more alarming, recent studies estimate that more than $1 trillion US dollars, beyond current spending, is needed to address this deficiency (Zhao, Fonseca-Sarmiento, and Tan 2019). This shortfall in capital investment is likely to continue as revenue streams for the Highway Trust Fund decrease due to increased fuel efficiency of the nation's vehicle fleet and stagnant growth in vehicle miles travelled across the United States (Schroeder 2015). In short, transportation agencies are being forced to do more with less.…”

Section: Introductionmentioning

confidence: 99%

Effects of Market Concentration and Competition in the Paving Sector

Swei¹,

miller²,

Akbarian³

et al. 2020

Preprint

View full text Add to dashboard Cite

Planning agencies are searching for innovative techniques to cost effectively preserve their existing infrastructure systems. In this study, we investigate the effects of two indicators of increased competition in the paving market as a mechanism to reduce roadway construction costs. The highway construction sector makes for a unique case study due to a rich dataset that allows for the simultaneous consideration of two indicators of competitive intensity: number of bidders on a project (an indicator of intra-industry competition – between firms who pave with the same material) and market concentration (an indicator of inter-industry competition – between firms who pave with material substitutes). To evaluate the relationship among these indicators and pricing, we develop panel data regression models using bid data that spans 10 years for 47 states within the United States. The models embed several covariates that account for cross-sectional and time-varying heterogeneity. Results from the analyses indicate both that a) the paving market functions as a private value auction, in which an increase in bidders reduces construction prices and b) states with more uniform market shares among pavement materials pay lower prices for all materials. For a “typical” roadway project, the parameterized model indicates that states that with the lowest quartile of market concentration pay at least 7% less than states with the highest quartile of market concentration. These findings support the notion that policies that reduce material market concentration have the potential to reduce an agency’s costs, allowing it to be more efficient with its limited resources.

show abstract

Primer on Motor Fuel Excise Taxes and the Role of Alternative Fuels and Energy Efficient Vehicles

Cited by 2 publications

References 8 publications

The Renewable Fuel Standard in Competitive Equilibrium: Market and Welfare Effects

The Renewable Fuel Standard in Competitive Equilibrium: Market and Welfare Effects

Effects of Market Concentration and Competition in the Paving Sector

Contact Info

Product

Resources

About