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Move Over Ethanol, Market Forces Favor CNG as a Gasoline Replacement

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Ed Dolan
Ed Dolan

The gap between the price of oil and natural gas is at its widest in history. That should favor wider use of Compressed Natural Gas (CNG) as a motor fuel. This slideshow examines the advantages of CNG and discusses some of the economic barriers that stand in the way of its wider use.

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More Slides from Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/ Move Over Ethanol, Market Forces Favor CNG Posted March 16, 2011 Terms of Use: These slides are made available under Creative Commons License Attribution—Share Alike 3.0 . You are free to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook, Introduction to Economics , from BVT Publishers.
The Search for the Fuel of the Future ,[object Object],[object Object],[object Object],[object Object],[object Object],Posted March 16, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com A Hydrogen Fuel Pump Hydrogen has been touted as the “fuel of the future” but it is decades away from widespread use. Photo source: EERE http://commons.wikimedia.org/wiki/File:Hydrogen_fueling_nozzle.jpg
CNG: The Fuel of Now ,[object Object],[object Object],[object Object],[object Object],Posted March 16, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com A CNG Powered Bus in Arlington, VA Photo source: Mario Roberto Duran Ortiz, http://commons.wikimedia.org/wiki/File:CNG_buses_Arlington_Transit_ART_07_2010_9541.JPG
CNG Around the World ,[object Object],[object Object],Posted March 16, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
Barriers to CNG: Filling Stations ,[object Object],[object Object],[object Object],Posted March 16, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com Picture source: http://commons.wikimedia.org/wiki/File:CNG_pump_DCA_07_2010_9833.JPG
Barriers to CNG: Conversion Cost ,[object Object],[object Object],[object Object],[object Object],Posted March 16, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com Almost any vehicle can be converted to CNG. NGV America maintains a business directory of conversion kits and installers http://www.ngvc.org/buz_dir/index.html Photo source: http://commons.wikimedia.org/wiki/File:Carroagas.jpg
Market Forces Now Favor CNG ,[object Object],[object Object],[object Object],Posted March 16, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com Follow this link to view a more detailed graph showing trends in oil and natural gas prices
Short-Run Market Reaction ,[object Object],[object Object],[object Object],Posted March 16, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
Long-Run Market Reaction ,[object Object],[object Object],[object Object],Posted March 16, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com
The Best Hope for CNG ,[object Object],[object Object],[object Object],[object Object],[object Object],Posted March 16, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

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Move Over Ethanol, Market Forces Favor CNG as a Gasoline Replacement

  • 1. More Slides from Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/ Move Over Ethanol, Market Forces Favor CNG Posted March 16, 2011 Terms of Use: These slides are made available under Creative Commons License Attribution—Share Alike 3.0 . You are free to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook, Introduction to Economics , from BVT Publishers.
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