Assessment of the Consumer Reasons for Selection of Ethanol Fuel

This paper summarizes findings from a study that evaluated consumer acceptance of different blends of ethanol at fueling stations in Iowa to assess the effectiveness of a Fueling our Future program. The main objective was to evaluate why consumers in Iowa make a particular fuel choice when a range of ethanol options is available. This information is important to fueling stations that may be interested in offering different blends of ethanol.

A survey was conducted at 16 gas stations in Iowa which offered different ethanol blends. Study findings are presented for all respondents combined and for consumers of flexible fuel and non-flexible fuel vehicles separately. A total of 5.9% of respondents purchased E-15, 7.6% purchased a mid-range blend, and 7.2% purchased E-85. Key findings showed that cost was the primary factor in fuel selection for respondents who purchased an ethanol blended gasoline. Around 6% of respondents who selected an ethanol indicated that the ethanol blend was required by their employer (company vehicle). Compatibility of the fuel with the respondent’s vehicle was a major factor for all respondents. Concerns about compatibility, followed by cost, were the top reasons why respondents did not select a higher ethanol blend. Some consumers also noted they purchased regular gasoline or lower ethanol blends due to fuel economy concerns.

The study suggests that most consumers expressed interest in purchasing higher ethanol blends. Compatibility was a common reason for not selecting higher blends. It was likely that many consumers who believed they owned a non-flex fuel vehicle may have owned a flex fuel vehicle. However, they did not understand what fuels could be used in their vehicle. Cost was also a common reason for selection of a particular fuel or willingness to purchase a higher ethanol blend. As a result, better education of consumers about fueling options and cost are the two factors that are most likely to encourage increased use of ethanol blends.