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Powering America: The impact of ethanol production in the Corn Belt states

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  • Blanco, Luisa
  • Isenhouer, Michelle
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    Abstract

    This paper investigates the impact of ethanol production in the Corn Belt states (Iowa, Indiana, Illinois, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin). Employing data at the county level, from 2005 to 2006, we investigate the effect of ethanol production on employment and wages. Our empirical results show that ethanol production has a positive significant effect on employment and wages, but this effect is of insignificant magnitude. We also find that counties with high and medium levels of ethanol production capacity show higher levels of employment and wages than those counties that do not produce ethanol. Counties with low levels of ethanol production do not show any significant difference in employment and wages than non-producing ethanol counties.

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    File URL: http://www.sciencedirect.com/science/article/B6V7G-4YKGJ6D-1/2/824e9d78bc551b4fe08c6d07ebcd0b1a
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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 32 (2010)
    Issue (Month): 6 (November)
    Pages: 1228-1234

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    Handle: RePEc:eee:eneeco:v:32:y:2010:i:6:p:1228-1234

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    Web page: http://www.elsevier.com/locate/eneco

    Related research

    Keywords: Ethanol Energy policy County level analysis;

    References

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    1. de Gorter, Harry & Just, David R., 2007. "The Welfare Economics of an Excise-Tax Exemption for Biofuels and the Interaction Effects with Farm Subsidies," Working Papers 127014, Cornell University, Department of Applied Economics and Management.
    2. Vedenov, Dmitry & Wetzstein, Michael, 2008. "Toward an optimal U.S. ethanol fuel subsidy," Energy Economics, Elsevier, vol. 30(5), pages 2073-2090, September.
    3. Daniel G. De La Torre Ugarte & Burton C. English & Kim Jensen, 2007. "Sixty Billion Gallons by 2030: Economic and Agricultural Impacts of Ethanol and Biodiesel Expansion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1290-1295.
    4. Bernard, F. & Prieur, A., 2007. "Biofuel market and carbon modeling to analyse French biofuel policy," Energy Policy, Elsevier, vol. 35(12), pages 5991-6002, December.
    5. Lavigne, Amanda & Powers, Susan E., 2007. "Evaluating fuel ethanol feedstocks from energy policy perspectives: A comparative energy assessment of corn and corn stover," Energy Policy, Elsevier, vol. 35(11), pages 5918-5930, November.
    6. Fortenbery, T. Randall & Park, Hwanil, 2008. "The Effect of Ethanol Production on the U.S. National Corn Price," Staff Paper Series 523, University of Wisconsin, Agricultural and Applied Economics.
    7. Charles, Michael B. & Ryan, Rachel & Ryan, Neal & Oloruntoba, Richard, 2007. "Public policy and biofuels: The way forward?," Energy Policy, Elsevier, vol. 35(11), pages 5737-5746, November.
    8. de Gorter, Harry & Just, David R., 2007. "The Economics of U.S. Ethanol Import Tariffs with a Consumption Mandate and Tax Credit," Working Papers 127023, Cornell University, Department of Applied Economics and Management.
    9. Ferris, John N. & Joshi, Satish V., 2004. "Evaluating The Impacts Of An Increase In Fuel-Ethanol Demand On Agriculture And The Economy," 2004 Annual meeting, August 1-4, Denver, CO 20089, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Eaves, James & Eaves, Stephen, 2007. "Renewable corn-ethanol and energy security," Energy Policy, Elsevier, vol. 35(11), pages 5958-5963, November.
    11. Amani Elobeid & Simla Tokgoz, 2006. "Removal of U.S. Ethanol Domestic and Trade Distortions: Impact on U.S. and Brazilian Ethanol Markets," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-wp427, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    12. Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
    13. Hettinga, W.G. & Junginger, H.M. & Dekker, S.C. & Hoogwijk, M. & McAloon, A.J. & Hicks, K.B., 2009. "Understanding the reductions in US corn ethanol production costs: An experience curve approach," Energy Policy, Elsevier, vol. 37(1), pages 190-203, January.
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    Cited by:
    1. Georges, Jessica, 2012. "Energizing Livelihoods: The Impact of the Biofuel Act in the Philippines," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124952, Agricultural and Applied Economics Association.
    2. Weber, Jeremy G., 2012. "The effects of a natural gas boom on employment and income in Colorado, Texas, and Wyoming," Energy Economics, Elsevier, vol. 34(5), pages 1580-1588.

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