...Should the Gasoline Tax be Raised? 1. Some people believe that reducing dependency on foreign oil, help the environment, decrease the government deficit and all those things can happen if the federal government increases the gasoline tax. But the proposal is not supported by everyone. At the mention of a tax increase, the general public revolts. Many people do not like to pay taxes, so any suggestions for a tax increase are strongly opposed. The federal gasoline tax topic is actual in the United States today. With the growing concern about global warming, an increased tax could help by reducing pollution and reduce our dependence on oil and to finance alternatives. An increased tax could also make the United States more energy independent in the long run, but American drivers would be hurt by a higher gasoline tax in the short run. The purpose of this issue paper is to analyze whether the federal gasoline tax should be raised. 2. First at all lets go through some history. The first federal gasoline tax was adopted in 1932 at a level of one cent per gallon. The tax has increased in small amounts over the past 75 years. In 1951, government raised the tax to 2 cents per gallon to raise additional funds for the Korean War. The federal gasoline tax doubled in 1959 to 4 cents per gallon to assist in funding the construction of the new interstate highway system in the United States (Williams, 2005, para. 2). The next increase was in 1981 to 9 cents per gallon...
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...(Nebraska Corn Board). Corn growers rely upon dependable and cost-effective transportation. Even though major freeways surround Stockton, the distance between Nebraska and California is about 1,430 miles away from each other, which has a negative cost advantage for transportation of corn with trucks because their functions are primarily based on shorter distances. Instead, railroads have better cost advantages because they operate to move longer distances and more raw materials than trucks. An example of an ideal railroad to transport corn from Nebraska to Stockton, California is Union Pacific, which covers “23 states in the western two-thirds of the United States” (UP). Because ethanol reduces the need for high-octane, petroleum-based gasoline components, and expensive imports, it saves consumers money at the gas pump....
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...land area to take advantage of the government subsidies which are offered for corn production to supply the ethanol production needs. Ethanol can be used in all cars in low concentrations, such as 10% ethanol. It can be used in specialized cars, trucks and minivans known as “flexible fuel vehicles” in concentrations up to 85% ethanol (commonly known as E85). Fuel stations in the Midwest are offering E85 fuel, often as a lower price per gallon then traditional fuel. There is a lot of controversy on the ethanol biofuel which centers on the cost to tax payers for ethanol subsidies, the environmental concerns focused especially on admissions in the ethanol production process, and the amount of net emission savings. Ethanol contains less energy per gallon than a gallon of gasoline. Meaning, a car will not go as far on a gallon ethanol as it would on a gallon of gasoline. Also ethanol can be more expensive than regular gasoline if the ethanol is purchased outside of the Midwest. According to the American Coalition for Ethanol, this type of fuel offers several benefits which includes that it is a renewable fuel in that it comes from agricultural crops. It only takes six...
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...Teedra Jones Business Economics GM 545 Fall B Term teedrajones@yahoo.com Essay 1. There are many factors that go into determining the price of a gallon of gas. The cost to crude oil refineries, refinery processing costs, distribution and tax all account for the high prices consumers are paying. Tax alone can makes up about 19 percent of the cost. While the price does fluctuate, it is steadily increasing. Between 2004 and 2005 the price of crude oil per barrel rose from $36.98 to $50.23 as reported by the Energy Information Administration. Fluctuation in price can be brought on by oil supply disruptions, such disruptions can stem from events from around the world. Disruption of production at refineries can raise the cost of gas. (Davis, 2007) In Atlanta, gas averaged less than 90 cents a gallon in early 2002, then rose steadily through the next several years, cresting at $3.15 after Hurricane Katrina in 2005. But prices moderated, falling to less than $2 a gallon in early 2007. Falling oil prices dampened gasoline’s cost this summer — until the hurricanes hit the Gulf. (Kanell, 2008) Such a disruption occurred after Hurricane Katrina hit the Gulf of Mexico and surrounding areas, where a number of refineries are located. The further you are from the gulf area, the more likely you are to find yourself paying more at the pump. It is a common occurrence to be driving down the road and to see that gas prices vary significantly from station to station. Competition...
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...Sweet Brazilian Bioethanol Industry International Case Study Rodel M. Adriano March 31, 2013 Economics for Managers 551 Curtin University of Technology Graduate School of Business International Case Study – Assessment 2 Page 1 of 14 TABLE OF CONTENTS I. INTRODUCTION ............................................................................................................................................ 4 A. Analysis of the Ethanol Subsidy .............................................................................................................. 5 B. 1973 oil crisis............................................................................................................................................... 5 C. 2000s Energy Crisis................................................................................................................................... 7 II. III. IV. V. PRESENT COMPETITIVENESS OF BIOETHANOL ............................................................................................ 7 OTHER ALTERNATIVE FUELS ..................................................................................................................... 11 CONCLUSIONS ............................................................................................................................................ 12 REFERENCES ..................................................................................................................................................
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...Pricing Dilemma: Why is diesel more expensive than gasoline? Problem Definition In this research we will be looking to find out why is diesel fuel more expensive than gasoline despite historically being cheaper to produce. This paradox did not exist prior to 2004 but after that year diesel retail prices became consistently higher than those of gasoline,. As we look at different aspects of this situation we will uncover that there are several main reasons for that: 1. Transition to cleaner diesel fuels made the production more expensive. 2. Global demand for diesel fuel is very high and the refining capacity is tight. 3. There is a difference in terms of on-highway fuel tax between diesel and gasoline. 4. Variability in terms of raw material prices. Another important part of this paper will be the analysis of the competitive landscape in this industry. We will discuss how the competition might be affecting the prices of both types of fuels. The role of costs (supply) Upstream Petroleum industry can be divided in two major segments: upstream and downstream. The value chain for petroleum products consists of the following stages: 1. Prospecting and Extraction 2. Downstream Refining or Importing of Road Fuel 3. Wholesale Transportation and Bulk sales of refined products 4. Retailing The main determinants for prices are cost of crude oil, refining, taxation and profit margin. While different sources report different percentage contributions...
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...barrels) of gasoline were consumed2 in the United States, a daily average of about 368.51 million gallons (or 8.77 million barrels). This was about 6% less than the record high of about 142.35 billion gallons (or 3.39 billion barrels) consumed in 2007. 1There are 42 U.S. gallons in a barrel. The world’s demand for oil increased sharply for several years, peaking at 86 million barrels per day in 2007. However, the global economic slowdown in recent years reversed this trend and demand fell for two consecutive years to just 85 million barrels per day in 2009, or 1 million barrels per day less than at its peak before rebounding in 2010. The Energy Information Administration expects growth to accelerate over the next two years reaching 88.8 million barrels per day in 2012 and nearly 89.7 million barrels per day in 2013. The EIA projects consumption in the Organization for Economic Cooperation and Development (OECD) countries to be nearly flat in 2012 and 2013. Growth is concentrated in the non-OECD countries, including China, Brazil, and the Middle East with world gains of about 0.8 million barrels per day expected in 2012 and another 0.9 million barrels per day in 2013. Price Elasticity of Demand for Gasoline A meta-analysis by Molly Espey, published in Energy Journal. Espey examined 101 different studies and found that in the short-run (defined as 1 year or less), the average price-elasticity of demand for gasoline is -0.26. That is, a 10% hike in the price of gasoline lowers...
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...Iowa State University Digital Repository @ Iowa State University Graduate Theses and Dissertations Graduate College 2012 Three essays on biofuel, environmental economics, and international trade Jingbo Cui Iowa State University Follow this and additional works at: http://lib.dr.iastate.edu/etd Part of the Agricultural and Resource Economics Commons, Agricultural Economics Commons, Economics Commons, and the Natural Resource Economics Commons Recommended Citation Cui, Jingbo, "Three essays on biofuel, environmental economics, and international trade" (2012). Graduate Theses and Dissertations. Paper 12304. This Dissertation is brought to you for free and open access by the Graduate College at Digital Repository @ Iowa State University. It has been accepted for inclusion in Graduate Theses and Dissertations by an authorized administrator of Digital Repository @ Iowa State University. For more information, please contact hinefuku@iastate.edu. Three essays on biofuel, environmental economics, and international trade by Jingbo Cui A dissertation submitted to the graduate faculty in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Major: Economics Program of Study Committee: Harvey Lapan, Co-major Professor GianCarlo Moschini, Co-major Professor Sebastien Pouliot John Schroeter Rajesh Singh Iowa State University Ames, Iowa 2012 Copyright c Jingbo Cui, 2012. All rights reserved. ii DEDICATION ...
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...Alternative Fuel Company Case Cristin Johnson BUS632: Advanced Logistics Ashford University Instructor: Matthew Keogh July 12, 2016 Alternative Fuel Company Case For this assignment I will refer to the Barwood Cab Fleet Study of alternative fuel. Barwood based in Kensington, Maryland incorporated the use of compressed natural gas (CNG) vehicles with a limited number in 1996. As one of the reasons to use the CNG vehicles was incentives which the local gas utility offered. This company has been in operation for over 30 years, being a family owned business with a fleet of some 400 vehicles which serves more than 5,000 customers on a daily basis. Like most cab companies the cabs are assigned to individual drivers as independent contractors, paying a daily rent in order to use Barwoods vehicles. “Of course, cost is still an issue with many alternative sources of fuel, according to Chuck Combs, who is the program lead for alternative energy at China Lake and provides the Navy and Marine Corps with technical expertise in solar and fuel cell efforts”. (Hillburn, 2007) Here will be discussed how the alternative fuel automobile company has a first year market forecast of 1000 units by identifying the forecasting model with an explanation of why it is the obvious choice, while during the first three years of operation the automobile company had actual sales of: year one 800 units, year two 1200 units, year three 2000 units and by using...
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...Alternate Fuel Edgar Castillo COMM 215 1/31/2013 Ms. Diana Ferrell Alternate Fuel The world is familiar with the possibility and real results of polluting the environment. The ongoing destruction of nature is a subject of great concern. One of the types of pollution regarded as responsible for global costs rising is air pollution. The supplies of petroleum across the world are limited. As petroleum supplies start to decrease, it will also become tougher to get what remains. Alternate fuel automobiles are the trend of our future, because now a days gasoline prices are at an all-time high. The United States' dependency on foreign oil is also at an extremely high level. Hybrid Electrical Vehicles (HEV) operate from a mix of an internal combustion engine and an electric motor. A few advantages of hybrid electric automobiles are better gas mileage, eco friendly and less depending on foreign oil. HEVs can go 40-70 miles for each gallon of gas. HEV allows the driver to travel much longer without needing to fill up the automobile with gas, which also permits savings on gas. This will assist decrease the country’s reliance on foreign oil. This is an advantage because it encourages self sufficiency for the nation. It can also save money in the overall budget for the country. HEVs assist the atmosphere by not liberating as much toxin filled exhaust into the air. Each day we notice how the auto producers are coming with various kinds of hybrid cars as creative types of fuel. Toyota...
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...momentum. It would be wise for Lotus to lead this market by providing this service to the consumer. Today environmentally concerned consumers are looking for ways to not only save the environment, but also save money. Oil prices are constantly on the rise and turmoil in the oil producing regions has not helped alleviate the problem. Taking these considerations and research into account, we feel that Louts Rental Cars should invest in an alternative fuel vehicle fleet. BACKGROUND ON ALTERNATIVE FUELS Alternative fuels are derived from resources other than petroleum. Some Alternative fuels are produced domestically, reducing our dependence on imported oil, and some are derived from renewable sources. Often, they produce less pollution than gasoline or diesel. Currently there are a wide variety of alternative fuel vehicles on the market. These alternative fuel vehicles use a variety of...
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...there is a traffic jam which is caused by large number of cars. As the technology improves rapidly, researchers and scientists are focusing on finding a solution which is beneficial for car producers as well as environment. Most significant goal is replacement of automobiles used widely today with energy efficient vehicle which leads to reduction in carbon dioxide emission that causes urban air pollution, climate change and dependence on imported oil. The air pollution caused by different types of automobiles is showed in the following Figure [1]. Researchers that aimed increasing energy efficiency while decreasing carbon dioxide emission focused on the operation systems of automobiles powered by diesel or gasoline. They came with an idea indicating that the operation systems of automobiles can be replaced by two different operation systems working...
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...The Eight Types of Alternative Fuel There are different kinds of alternative fuels in the world at present. There are eight different types of alternative fuels which are Ethanol, Natural Gas, Propane, Hydrogen, Bio-Diesel, Electricity, Methanol and P-series. All these alternative fuels have different properties, different source used, and different vehicle's used and different impact on the environment and on the world. But one point to be noted is that even though they have different impact on environment, alternative fuels in vehicles can generally reduce harmful pollutants and exhaust emissions. Another interesting fact I found about these fuels in particular is that they can rather be domestically produced and can be derived from renewable resource but the fossil fuels which are being used today such as petroleum and diesel cannot be derived from renewable source. Once these fossil fuels will be extinct alternative fuels are the one which will come to use. I personally think that if even a small majority of the people in the world start using alternative fuels then the pollution and disease will decline and the pressure on fossil fuels, of course, will decrease. The advantages to use alternative fuels are massive. The impact of alternative fuels can have on earth, on people, on so many things is just great. Using alternative fuels can change a lot of things on earth a pollution free place. Here are some possible alternative means of propulsion for road vehicles...
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...What micro environmental factors affected both the first generation and second generation models of the Toyota Pries? How well has Toyota dealt with these factors? The Company: The Company has expended plenty of money on R&D and marketing of the Pries. Why? Toyota expects the Prius to set the standard for the entry of a line of hybrids from mini compacts to luxury vehicles. Thus, the car is an important component of company strategy. To successfully introduce the Prius and build this new line of vehicles will require coordination within the company. The second generation of Prius has already caused problems within the company. Production was increased at one plant necessitating a cut in production for other lines. Suppliers: With the successful introduction of the Prius, companies such as Panasonic may invest more in R&D to develop cheaper batteries. If they can do so, this will result in lower prices that, in turn, may further stimulate demand. Thus, it is to Toyota's advantage to work with suppliers to encourage this R&D. Marketing Intermediaries: The most important marketing intermediaries here would be dealers. Toyota had to prepare materials for dealers and their salespeople so that they could sell the Prius. Now, they have to "teach" purchasers how to drive the cars to get maximum fuel efficiency. A shortage of cars for the second generation of Prius is causing problems with dealers who want more and could sell the additional cars. In turn, dealers marking...
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...Business Economics GM545 Feb/2012 lynnettehamrick@yahoo.com The gas prices in my area have significantly increased within the past few weeks. I reside in Silver Spring Maryland and my Nissan Maxima requires premium fuel. The current price at Shell for premium gasoline is $3.999. I'm paying $4 a gallon for gas. Fox five dc news reported that last year around this time, the price for regular gasoline was $3.25 a gallon (http://www.Thepriceoffuel.com). The gas prices lately have not been stable and since the recession started in 2008 the gas has been fluctuating around $4 a gallon for regular oil. Gas prices fluctuate for many reasons which include the price for crude oil in the world market, supply and demand for gasoline, local competing gas stations, government regulations, and taxes. Crude oil prices are 55% of the price of gas and distribution and tax account for the remaining 45% (http://www.Thepriceoffuel.com). The demand for gas occurs around summer vacation and major holidays where motorist consume the most gas. When people drive less and use other means of transportation like, car pools, public transportation, and bicyclist, this brings the demand down. The average price in Maryland for regular gas is $3.626 compared to a month ago at $3.416. The highest gas stations in the area our in Montgomery county, where as locations like Baltimore county and Waldorf have cheaper priced gas. Another aspect of the lower prices is that these our locally...
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