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Ethanol Plant Location Determinants and County Comparative Advantage

Author

Listed:
  • Lambert, Dayton M.
  • Wilcox, Michael D.
  • English, Alicia
  • Stewart, Lance A.

Abstract

The location of ethanol plants is determined by infrastructure, product and input markets, fiscal attributes of local communities, and state and federal incentives. This empirical analysis uses probit regression along with spatial clustering methods to analyze investment activity of ethanol plants at the county level for the lower U.S. 48 states from 2000 to 2007. The availability of feedstock dominates the site selection decision. Other factors, such as access to navigable rivers or railroads, product markets, producer credit and excise tax exemptions, and methyl tertiary-butyl ether bans provided some counties with a comparative advantage in attracting ethanol plants.

Suggested Citation

  • Lambert, Dayton M. & Wilcox, Michael D. & English, Alicia & Stewart, Lance A., 2008. "Ethanol Plant Location Determinants and County Comparative Advantage," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(01), April.
  • Handle: RePEc:ags:joaaec:45511
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Akinfenwa, Samson O. & Qasmi, Bashir A., 2014. "Ethanol, the Agricultural Economy, and Rural Incomes in the United States: A Bivariate Econometric Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(2), August.
    2. Sant'Anna, Ana C. & Granco, Gabriel & Bergtold, Jason S. & Caldas, Marcellus M., 2015. "It’s all about location?: An analysis of the factors that affect the location decision of sugarcane processing mills in Goiás and Mato Grosso do Sul, Brazil," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205338, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    3. Fatal, Yehushua S. & Thurman, Walter N., 2014. "The Response of Corn Acreage to Ethanol Plant Siting," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(02), May.
    4. Stevens, Andrew, 2015. "Fueling Local Water Pollution: Ethanol Refineries, Land Use, and Nitrate Runoff," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205741, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    5. Sesmero, Juan P. & Perrin, Richard K. & Fulginiti, Lilyan E., 2012. "Technology, Markets, and Ethanol Plants Shutdown Price," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124915, Agricultural and Applied Economics Association.
    6. T. Randall Fortenbery & Steven C. Deller & Lindsay Amiel, 2013. "The Location Decisions of Biodiesel Refineries," Land Economics, University of Wisconsin Press, vol. 89(1), pages 118-136.
    7. W. Richard Goe & Anirban Mukherjee, 2013. "The implications of corn-based ethanol production for non-metropolitan development in the North Central region of the US," Chapters,in: Handbook of Rural Development, chapter 12, pages i-ii Edward Elgar Publishing.
    8. Galinato, Suzette P. & Young, Douglas L. & Frear, Craig S. & Yoder, Jonathan K., 2011. "Will Washington Provide Its Own Crop Feedstocks for Biofuels?," Western Economics Forum, Western Agricultural Economics Association, vol. 10(01).
    9. Juan P. Sesmero & Richard K. Perrin & Lilyan E. Fulginiti, 2016. "A Variable Cost Function for Corn Ethanol Plants in the Midwest," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(3), pages 565-587, September.
    10. Zhang, Wendong & Irwin, Elena G. & Nickerson, Cynthia J., 2012. "The Expanding Ethanol Market and Farmland Values: Identifying the Changing Influence of Proximity to Agricultural Delivery Points," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124690, Agricultural and Applied Economics Association.
    11. Register, D. Lane & Lambert, Dayton M. & English, Burton C. & Jensen, Kimberly L. & Menard, R. Jamey & Wilcox, Michael D., 2012. "Geographical Analysis of US Green Sector Industry Concentration," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119742, Southern Agricultural Economics Association.

    More about this item

    Keywords

    cluster analysis; comparative advantage; ethanol production; location model; Community/Rural/Urban Development; Environmental Economics and Policy; Political Economy; R1; R3;

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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