IDEAS home Printed from https://ideas.repec.org/p/ags/aaea07/9802.html
   My bibliography  Save this paper

Estimating the Effects of U.S. Distortions in the Ethanol Market Using a Partial Equilibrium Trade Model

Author

Listed:
  • Martinez-Gonzalez, Ariadna
  • Sheldon, Ian M.
  • Thompson, Stanley R.

Abstract

In this paper we assess the impact of the elimination of trade distortions on imports from Brazil to the U.S. For this purpose, we estimate a partial equilibrium trade model - an ethanol export supply function for Brazil and an ethanol import demand function for the U.S.-, based on annual data from 1975 to 2006, and use the results to compute a 'back-of-the-envelope' measure of the deadweight loss derived from those trade distortions as well as one derived from producing the 35 billion gallons proposed in the 'Twenty in Ten' 2007 State of the Union Policy Initiative assuming the distortions are not eliminated. Two-stage least squares is used to estimate both functions, the world price of ethanol being treated as endogenous. This paper supports the idea that the U.S. and Brazil would reap gains from trade if trade distortions were eliminated.

Suggested Citation

  • Martinez-Gonzalez, Ariadna & Sheldon, Ian M. & Thompson, Stanley R., 2007. "Estimating the Effects of U.S. Distortions in the Ethanol Market Using a Partial Equilibrium Trade Model," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9802, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea07:9802
    DOI: 10.22004/ag.econ.9802
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/9802/files/sp07ma09.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.9802?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Dengjun & Asche, Frank & Oglend, Atle, 2014. "Ethanol and trade: An analysis of price transmission in the US market," Energy Economics, Elsevier, vol. 42(C), pages 1-8.
    2. Yano, Yuki & Blandford, David & Surry, Yves R., 2010. "The Implications of Alternative U.S. Domestic and Trade Policies for Biofuels," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91832, Agricultural Economics Society.
    3. van Tol, M.C.M. & Moncada, J.A. & Lukszo, Z. & Weijnen, M., 2021. "Modelling the interaction between policies and international trade flows for liquid biofuels: an agent-based modelling approach," Energy Policy, Elsevier, vol. 149(C).
    4. Unknown, 2013. "Journal of International Agricultural Trade and Development, Volume 09, Number 1, 2013," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 9(1), pages 140-140.
    5. Dong Hee Suh & Charles B. Moss, 2017. "Dynamic adjustment of ethanol demand to crude oil prices: implications for mandated ethanol usage," Empirical Economics, Springer, vol. 52(4), pages 1587-1607, June.
    6. Tala H. Qtaishat & Mohammad S. El-Habbab & Dan P. Bumblauskas, 2019. "Welfare Economic Analysis of Lifting Water Subsidies for Banana Farms in Jordan," Sustainability, MDPI, vol. 11(18), pages 1-10, September.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea07:9802. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.