کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
959249 | 929188 | 2011 | 17 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: The higher price of cleaner fuels: Market power in the rail transport of fuel ethanol The higher price of cleaner fuels: Market power in the rail transport of fuel ethanol](/preview/png/959249.png)
This paper provides evidence of market power in the transportation of ethanol used in reformulated gasoline and alternative transportation fuels. I estimate a reduced form model for railroad route-level prices. My identification strategy instruments for railroad entry, controls for selection and explicitly models capacity constraints. A detailed understanding of this industry is important because U.S. environmental policies seek to substantially expand ethanol use. Evidence of market power may alter the types of policies pursued by lawmakers. I find that ethanol shipment prices are lower for more competitive routes. I also find evidence that railroads price discriminate based on environmental regulation at route destinations. Monopolist prices for shipments to carbon monoxide non-attainment areas are 3% higher than shipments to other destinations. This price premium falls sharply with increased competition. This suggests a perverse result where environmental regulation increases the price of a clean input.
Journal: Journal of Environmental Economics and Management - Volume 62, Issue 2, September 2011, Pages 123–139