The sharp rise in energy prices in the 1980s triggered a strong interest in the production of ethanol as an additional energy component. Economists are divided as to the payoffs from ethanol derived corn in part because of the complex interrelationship between energy produced from ethanol and energy from fossil fuels. Using a welfare economic framework, we calculate that there can be treasury savings from ethanol using tax credits as these subsidies can be smaller than direct payments to corn farmers which are essentially eliminated from the expansion of ethanol. Also, to the extent that ethanol dampens fuel prices there can be a net welfare gain from ethanol production in the presence of ethanol subsidies.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
References listed on IDEAS 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.:
Babcock, Bruce A. & Beghin, John & Heffernan, Keith & Kaus, Phillip & Thomas, Katie & Olson, Becky, 2000.
"Iowa Ag Review,"
Staff General Research Papers
1713, Iowa State University, Department of Economics.
Other versions:
Babcock, Bruce A. & Beghin, John & Clarke, Sandra & Heffernan, Keith & Hempe, Betty & Olson, Becky, 2002.
"Iowa Ag Review,"
Staff General Research Papers
2052, Iowa State University, Department of Economics.
Babcock, Bruce A. & Beghin, John & Clarke, Sandra & Heffernan, Keith & Hempe, Betty & Clemens, Roxanne & Olson, Becky, 2002.
"Iowa Ag Review,"
Staff General Research Papers
2092, Iowa State University, Department of Economics.
Elmore, Steven L. & Smith, Darnell B. & Meyers, William H. & Hart, Chad & Babcock, Bruce A. & Lawrence, John D., 1996.
"Iowa Ag Review,"
Staff General Research Papers
1027, Iowa State University, Department of Economics.
Babcock, Bruce A. & Chaherli, Nabil M. & Lakshminarayan, P. G. & Smith, Darnell B. & Elmore, Steven L. & Pautsch, Greg & Meyers, William H. & Hart, Chad, 1999.
"Iowa Ag Review,"
Staff General Research Papers
1527, Iowa State University, Department of Economics.
Babcock, Bruce A. & Beghin, John & Thomas, Katie & Heffernan, Keith & Olson, Becky & Kaus, Phillip, 2000.
"Iowa Ag Review,"
Staff General Research Papers
1778, Iowa State University, Department of Economics.
Babcock, Bruce A. & Beghin, John C. & Clarke, Sandra & Heffernan, Keith & Hempe, Betty & Kaus, Phillip & Olson, Becky, 2001.
"Iowa Ag Review,"
Staff General Research Papers
1940, Iowa State University, Department of Economics.
Babcock, Bruce A. & Beghin, John & Thomas, Katie & Heffernan, Keith & Olson, Becky & Kaus, Phillip, 2000.
"Iowa Ag Review,"
Staff General Research Papers
1819, Iowa State University, Department of Economics.
Babcock, Bruce A. & Beghin, John & Heffernan, Keith & Kaus, Phillip & Pim, Judith & Hempe, Betty & Pyle, Janis & Olson, Becky, 2000.
"Iowa Ag Review,"
Staff General Research Papers
1859, Iowa State University, Department of Economics.
Babcock, Bruce A. & Beghin, John & Thomas, Katie & Heffernan, Keith & Olson, Becky & Kaus, Phillip, 1999.
"Iowa Ag Review,"
Staff General Research Papers
1667, Iowa State University, Department of Economics.
Babcock, Bruce A. & Beghin, John & Clarke, Sandra & Heffernan, Keith & Hart, Chad & Hempe, Betty & Olson, Becky, 2001.
"Iowa Ag Review,"
Staff General Research Papers
2017, Iowa State University, Department of Economics.
Babcock, Bruce A. & Beghin, John & Thomas, Katie & Heffernan, Keith & Olson, Becky & Kaus, Phillip, 1999.
"Iowa Ag Review,"
Staff General Research Papers
1560, Iowa State University, Department of Economics.
Babcock, Bruce A. & Beghin, John & Heffernan, Keith & Hempe, Betty & Chimenti, Linda & Olson, Becky & Kaus, Phillip, 2000.
"Iowa Ag Review,"
Staff General Research Papers
1900, Iowa State University, Department of Economics.
Babcock, Bruce A. & Beghin, John & Clarke, Sandra & Heffernan, Keith & Hempe, Betty & Hart, Chad & Olson, Becky, 2001.
"Iowa Ag Review,"
Staff General Research Papers
1997, Iowa State University, Department of Economics.
Lawrence, John D. & Meyer, Seth D. & Kruse, John R. & Hayes, Dermot J. & Babcock, Bruce A. & Hennessy, David & Smith, Darnell B. & Meyers, William H., 1995.
"Iowa Ag Review,"
Staff General Research Papers
864, Iowa State University, Department of Economics.
Babcock, Bruce A. & Clarke, Sandra & Hempe, Betty & Olson, Becky & Beghin, John & Heffernan, Keith & Hart, Chad, 2001.
"Iowa Ag Review,"
Staff General Research Papers
1983, Iowa State University, Department of Economics.
Barrett, Chad & Kaus, Phil & Smith, Darnell & Hayes, Dermot J. & Babcock, Bruce A. & Meyers, William H., 1999.
"Iowa Ag Review,"
Staff General Research Papers
1414, Iowa State University, Department of Economics.
Cited by: (explanations, 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.)