Pass-through of the policy-induced E85 subsidy: Insights from Hotelling's model

Pass-through of the policy-induced E85 subsidy: Insights from Hotelling's model

We build a structural model of imperfect competition for a retail market that supplies both low-ethanol (E10) and high-ethanol (E85) gasoline blends. The model permits us to study some impacts of the E85 subsidy induced by the U.S. Renewable Fuel Standard, specifically how the pass-through of this s...

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Bibliographic Details
Main Authors: Luo, J. (Author), Moschini, G. (Author)
Format: Article
Language:English
Published: Elsevier B.V. 2019
Subjects:
Analytical and numerical solutions
Commerce
Competition
E85
economic policy
energy efficiency
ethanol
Ethanol
gas production
gas supply
Gasoline
Horizontal and vertical differentiation
Horizontal differentiations
Imperfect competition
Location
Market power
Market Power
market system
Nash equilibrium outcome
numerical model
Pass-through
retailing
Sales
sustainability
United States
Vertical differentiation
Vertical product differentiation
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