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The Ethanol Mandate and Corn Price Volatility

Author

Listed:
  • Peter Maniloff

    (Division of Economics and Business, Colorado School of Mines)

  • Sul-Ki Lee

    (Division of Economics and Business, Colorado School of Mines)

Abstract

Food price shocks can have substantial welfare implications, particularly in the world's low income regions. A number of previous studies has shown that the United States ethanol mandate has increased average corn price levels. We provide suggestive evidence that the mandate has also increased corn price volatility. Identification relies upon a series of falsification tests. Our results suggest that the ethanol mandate has increased the likelihood of very high price levels by even more than previously thought.

Suggested Citation

  • Peter Maniloff & Sul-Ki Lee, 2015. "The Ethanol Mandate and Corn Price Volatility," Working Papers 2015-01, Colorado School of Mines, Division of Economics and Business.
    • Handle: RePEc:mns:wpaper:wp201501
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    File URL: http://econbus-papers.mines.edu/working-papers/wp201501.pdf
    File Function: First version, 2015
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    References listed on IDEAS

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    Cited by:

    1. Markel, Evan & Sims, Charles & English, Burton C., 2018. "Policy uncertainty and the optimal investment decisions of second-generation biofuel producers," Energy Economics, Elsevier, vol. 76(C), pages 89-100.

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    Keywords

    Ethanol; biofuels; food price shocks; food security;
    All these keywords.

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