TAILIEUCHUNG - A comparative coes analysis of biodiesel, compressed natural gas, methanol, and diesel for transit bus system

Current regulatory policies place the alternative fuel industry at a critical junction. Emissions from alternative - fueled bus engines consistently indivate lower emissions of reactive hydrocarbons, carbon monoxide, and particulate matter thaan diesel engines. | ELSEVIER RESOURCE anTENERGY ECONOMICS Resource and Energy Economics 20 1997 1-15 A comparative cost analysis of biodiesel compressed natural gas methanol and diesel for transit bus systems Nicolas . Ahouissoussi a Michael E. Wetzstein b World Bank Resident Mission. Cotonou Benin b Department of Agricultural and Applied Economics Unirersity of Georgia Athens GA 30602 USA Abstract A comparison of operating costs for buses used in a transit system are investigated considering four alternative fuels biodiesel compressed natural gas. methanol and diesel. Rust s nested fixed point maximum likelihood estimation algorithm is used in this comparison. The algorithm considers both tangible costs such as fuel maintenance and infrastructure and intangible costs associated with different levels of bus engine operating reliability under alternative fuels. Using data on actual monthly mileage and time of engine rebuilds under the four alternative fuels the Rust algorithm is employed assuming that an optimal maintenance strategy is adopted for each alternative fuel type. Results indicate that although biodiesel and biodiesel blends have higher total costs than diesel fuel they have the potential of competing with CNG and methanol as fuels for urban transit buses. 1997 Elsevier Science . JEL classification Q40 Q42 Q48 Keywords Biodiesel Natural gas Methanol Diesel Buses Alternative fuels Corresponding author. Department of Agricultural and Applied Economics University of Georgia. Athens GA 30602. USA. Tel. 706 542-0758 fax 706 542-0739 e-mail mwetzstein@ 0928-7655 97 1997 Elsevier Science . All rights reserved. PH s0928-7655 96 000 I 5-2 2 . Ahouissoussi . Welzstein Resource and Energy Economics 20 1997 1 15 1. Introduction Current regulatory policies place the alternative fuel industry at a critical junction. Emissions from alternative-fueled bus engines consistently indicate lower emissions of reactive hydrocarbons carbon monoxide and .

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