Effects of Corn Ethanol on US Retail Gasoline Prices: A PRISMA-Guided Systematic Literature Review and Bibliometric Analysis

Abstract

This paper seeks to offer a comprehensive overview of contemporary literature about the effects and contributions of corn ethanol on retail gasoline prices in the United States. A systematic literature review adhering to the PRISMA statement was conducted to address four research questions: (1) What are the primary characteristics of the literature concerning the impact and contributions of ethanol on US retail gasoline prices? (2) What are the primary clusters of articles detected in the reviewed literature? (3) What was the effect of the Volumetric Ethanol Excise Tax Credit/Renewable Fuel Standard (VEETC/RFS) mandate on the price of gasoline, and what are the most common ways to figure this out in the literature? (4) What are the primary trends and potential new research avenues for this body of literature? The characterization of the sample led to the identification of driving themes, including energy policy, costs, price dynamics, trade, and the energy market. The sample also revealed three primary clusters: (i) the effects of biofuels on commodity prices and overall price dynamics; (ii) the influence of public policies on the adoption of ethanol and the adaptability in creating fuel blends; and (iii) the environmental consequences of biofuels. The main finding in the literature that was looked at is that adding ethanol lowers the price of gasoline at the pump. Estimates range from no effect to about 10% off the price of gasoline. Lastly, the most important area of ​​research is the effects of biofuels on commodity prices and the overall price dynamics. This is also the trend represented by the proposed research agenda.