Slopade importtullar på etanol : En analys av framtida ekonomiska effekter
In order to protect the European production of fuel ethanol, high import tariffs have been introduced. We have analyzed how the sugar and ethanol markets function in Brazil and the EU, and then tried to forecast the economic effects that can result from removing the tariff. We find that the ethanol price in the EU decreases and as a result of that the demand increases. Gasoline consumption increases in the short run in both EU and Brazil, since a lower ethanol price causes lower gasoline price through the blend ratio of ethanol into gasoline. In the longer run gasoline consumption can decrease as “flex fuel”-vehicles increase in numbers. With or without the import tariff continued investments in fuel ethanol may result in severe lock-in effects.
Source Type:Master's Thesis
Keywords:fuel ethanol tariff international trade sugar
Date of Publication:03/03/2008