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Ethanol Policy in the Clean Air-Free Trade Era


  • Rask, Norman
  • Rask, Kevin
  • Tiefenthaler, Jill


The U.S. corn ethanol industry is a subsidized, high cost, trade protected, limited scale industry; unable to compete in free markets orto efficiently supply new fuel demands of clean air legislation. Lower cost, sugarcane ethanol from Latin America (Brazil) should be asupplementary source, especially for U.S. coastal markets. Counter trade-corn for ethanolwould be more beneficial to U.S. corn producers than domestic ethanol corn markets and would result in more efficient land use, less soil erosion, and less fossil fuel use. A variable producer subsidy should replace the current market subsidies and import tax policies, giving limited protection to the domestic ethanol industry while assuring adequate low-cost ethanol supplies through competitive imports.

Suggested Citation

  • Rask, Norman & Rask, Kevin & Tiefenthaler, Jill, 1993. "Ethanol Policy in the Clean Air-Free Trade Era," Choices, Agricultural and Applied Economics Association, vol. 8(1).
  • Handle: RePEc:ags:aaeach:130849

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    References listed on IDEAS

    1. Just, Richard E & Zilberman, David, 1986. "Does the Law of Supply Hold under Uncertainty?," Economic Journal, Royal Economic Society, vol. 96(382), pages 514-524, June.
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    Cited by:

    1. Rask, Kevin N., 1998. "Clean air and renewable fuels: the market for fuel ethanol in the US from 1984 to 1993," Energy Economics, Elsevier, vol. 20(3), pages 325-345, June.
    2. Alston, Julian M. & Beach, E. Douglas, 1996. "Market distortions and the benefits from research into new uses for agricultural commodities: Ethanol from corn," Resource and Energy Economics, Elsevier, vol. 18(1), pages 1-29, March.

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    Agricultural and Food Policy;


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