Economic Effects of Biofuel Production on States and Rural Communities
AbstractThis study summarizes research on farm-, local-, regional-, and macro-level economic effects of ethanol production. Given current production levels, the ethanol production industry annually employees approximately 3,500 workers, pays out nearly $132 million in worker salaries, generates over $110 million in local taxes, and takes in some $2 billion in government incentive payments. Projections for a 60 million gallon per year ethanol plant indicate an annual increase in corn usage of 21 million bushels, a one-time capitalization of $75 million, an increase in local corn prices between $0.06/bushel and $0.12/bushel, a 54 direct and 210 indirect jobs created, and increase in local tax revenues of $1.2 million, a decrease in federal commodity program outlays of $30 million, and an increase in ethanol production incentives (federal only) of around $30.5 million.
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Bibliographic InfoArticle provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.
Volume (Year): 38 (2006)
Issue (Month): 02 (August)
biofuel; ethanol; local economy; government subsidies; Community/Rural/Urban Development; Resource /Energy Economics and Policy; O13; Q40; Q42; R10;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
- Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Outlaw, Joe L. & Anderson, David P. & Klose, Steven L. & Richardson, James W. & Herbst, Brian K. & Waller, Mark L. & Raulston, J. Marc & Sneary, Shannon L. & Gill, Robert Chope, II, 2003. "An Economic Examination of Potential Ethanol Production in Texas," Working Papers 42707, Texas A&M University, Agricultural and Food Policy Center.
- Gardner, Bruce L., 2003. "Fuel Ethanol Subsidies And Farm Price Support: Boon Or Boondoggle?," Working Papers 28599, University of Maryland, Department of Agricultural and Resource Economics.
- Swenson, David A., 2005. "Model Economic Analyses: An Economic Impact Assessment of an Ethanol Production Facility in Iowa," Staff General Research Papers 12226, Iowa State University, Department of Economics.
- Guerrero, Bridget L. & Johnson, Jeffrey W. & Amosson, Stephen H. & Johnson, Phillip N. & Segarra, Eduardo & Surles, James, 2011. "Ethanol Production in the Southern High Plains of Texas: Impacts on the Economy and Scarce Water Resources," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 41(1).
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