Epsilon Archive for Student Projects

Abstract

Ethanol fuel is a biofuel, which been widely reported in the public debate and on the fuel market the last years. Ethanol is sold as both E85 and as a five percent admixture of all petrol sold in Sweden. Research studies on ethanol fuel often focus on environmental issues surrounding the production and utilization of ethanol as a fuel, and omits the private and business aspects of the subject. The purpose of this study is to illustrate the economics of ethanol as a fuel. How the Swedish market for ethanol is and how it evolved over time and what the future prospects are. The method is based on the following questions: Is ethanol an economically sustainable option for the consumer? How is ethanol competing to other fuels on the market? Is it room for further ethanol from the forest industry? The study was conducted by a qualitative market research, where representatives from three different car dealers have been interviewed to reflect their views on ethanol sales. They interviewed persons had a number of questions surrounding their sales of ethanol cars and how they analyze the future ethanol market. The qualitative interviews are interspersed in the results of the study along with a literature review that provides an overview of biofuels and ethanol. The results of the study show that ethanol is highly a subject to competition of other fuels and that there is great uncertainty about the ethanol as fuel. Today, more consumers choose diesel instead of ethanol as a fuel. The decisive factor for the consumer is always what it cost to drive the car. The future prospects for ethanol depends on the strategic decision taken about ethanol and biofuel, in Sweden and in the EU.