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Table 7 Ethanol price determinants

From: The commercial performance of cellulosic ethanol supply-chains in Europe

Variable Value (2005US$ litre-1) Comment Reference
Gasoline prices 0.43 Average EU wholesale price in 2005 (oil price of US$62 barrel-1. [33]
  0.67 Estimated wholesale price for an oil price of US$100 barrel-1.  
  0.98 Estimated wholesale price for an oil price of US$150 barrel-1.  
Average value of subsidya 0.28 Average difference between price of ethanol and gasoline. The principal assumption is that the price difference can be ascribed solely to EU subsidy regimes.  
Margin incentiveb 0.027 Mid-point estimate for the US market. [32]
Transport and distribution costs 0.032 Upper bound estimate for ethanol transport in US market. [32]
  1. aEthanol: market fuel ethanol spot – FOB Rotterdam: 04.07.2006–07.08.2007. Gasoline price: unleaded – FOB Rotterdam barges: 04.07.2006–07/08/07.
  2. bThe margin incentive represents a discount to the purchaser to incentivise the use of ethanol compared with alternatives.