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Necessary Incentives for a Methanol Fuel Market
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English
Abstract
Incentives that induce vehicle and fuel suppliers and consumers to risk investment are necessary for a new methanol motor fuel market. History shows price advantage alone isn't enough to start a new motor fuel. Convenience, operating reputation and resale value must prove competitive with gasoline, and total incentives must be at the right level. Beyond start-up risks, incentives must compensate for system cost penalties over gasoline, and long-term supply concerns. Not all methanol's advantages accrue to the market risk-takers, and market incentives that are available are limited. The flexible fuel vehicle reduces incentives needed by reducing start-up risks, but does not eliminate system cost and fuel supply concerns for assured start-up and transition to dedicated vehicles. Mandates or a purchase/auction system to increase incentives are preferable to direct subsidies. Gasoline disincentives are also effective.
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Citation
Walters, H., "Necessary Incentives for a Methanol Fuel Market," SAE Technical Paper 861572, 1986, https://doi.org/10.4271/861572.Also In
References
- Lundberg Letter - PS North Hollywood, California Jan-June 1986
- Odell P. R. Rosing K. E. Erasmus University Rotterdam “The Future of Oil: A Re-evaluation,” Summer 1984
- SRI International, Synthetic Fuels Program, Multiclient Study SFP '80 Final Report.
- Nichols R. J. Norbeck J. M. “Assessment of Emissions from Methanol-Fueled Vehicles: Implications for Ozone Air Quality,” Seventy-Eighth Annual Meeting of the Air Pollution Control Association Detroit June 16-21, 1985
- Nichols R. J. Moulton S. Sefer N. Ecklund E. E. “Options for the Introduction of Methanol as a Transportation Fuel,” 1986 SAE International Fuels and Lubricants Meeting Philadelphia October 6-9, 1986