Understanding the Underlying Fundamentals of Ethanol Markets: Linkages between Energy and Agriculture
AbstractThis study analyzes the impact of price shocks in three input and output markets critical to ethanol: gasoline, corn, and sugar. We investigate the impact of these shocks on ethanol and related agricultural markets in the United States and Brazil. We find that the composition of a country's vehicle fleet determines the direction of the response of ethanol consumption to changes in the gasoline price. We also find that a change in feedstock costs affects the profitability of ethanol producers and the domestic ethanol price. In Brazil, where two commodities compete for sugarcane, changes in the sugar market affect the competing ethanol market.
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Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN with number 9795.
Date of creation: 2007
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agricultural markets; energy; ethanol; renewable fuels; Resource /Energy Economics and Policy; Q11; Q18; Q42;
Find related papers by JEL classification:
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
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- Hira, Anil, 2011. "Sugar rush: Prospects for a global ethanol market," Energy Policy, Elsevier, vol. 39(11), pages 6925-6935.
- de Gorter, Harry & Just, David R., 2007.
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- 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.
- Du, Xiaodong & Hayes, Dermot J., 2008. "Impact of Ethanol Production on U.S. and Regional Gasoline Prices and On the Profitability of U.S. Oil Refinery Industry," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6353, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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