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Environmental Efficiency Among Corn Ethanol Plants

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  • Sesmero, Juan P.
  • Perrin, Richard K.
  • Fulginiti, Lilyan E.

Abstract

This study evaluates the environmental efficiency of seven recently constructed ethanol plants in the North Central region of the U.S., using nonparametric data envelopment analysis (DEA). Environmental efficiency is measured and decomposed into its technical and allocative sources. Results show that, on average, plants in our sample may be able to reduce GHG emissions by a maximum of 6% or by 3,116 tons per quarter. The economic (shadow) cost of reducing greenhouse gas emissions reveals that, at current activity levels, plants may have room for simultaneous improvement of environmental efficiency and economic profitability.

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File URL: http://purl.umn.edu/130167
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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 130167.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:130167

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Related research

Keywords: ethanol carbon footprint; environmental efficiency; shadow cost; data envelopment analysis; Research and Development/Tech Change/Emerging Technologies; Resource /Energy Economics and Policy;

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  1. Tim Coelli & Ludwig Lauwers & Guido Huylenbroeck, 2007. "Environmental efficiency measurement and the materials balance condition," Journal of Productivity Analysis, Springer, vol. 28(1), pages 3-12, October.
  2. Perrin, Richard K. & Fretes, Nickolas F. & Sesmero, Juan Pablo, 2009. "Efficiency in Midwest US corn ethanol plants: A plant survey," Energy Policy, Elsevier, vol. 37(4), pages 1309-1316, April.
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Cited by:
  1. Wamisho, Kassu, 2012. "The Shadow Price of GHG Reduction in Corn Ethanol Plants," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126862, International Association of Agricultural Economists.
  2. Wamisho, Kassu, 2012. "The Shadow Price of GHG Reduction in Corn Ethanol Plants," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124719, Agricultural and Applied Economics Association.

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