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Impact of Ethanol Plants on Local Land Use Change

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  • Miao, Ruiqing

Abstract

We investigate effects of corn-based ethanol plants on local land uses using county-level panel data for Iowa for 1997 through 2009 and an Arellano-Bond difference-generalized method-of-moments estimator. Our results show that ethanol plants have statistically significant effects on the proportion of acres planted to corn in the plants’ host counties. Furthermore, ceteris paribus, the land-use-change effect of locally owned plants (owned by local farmers or cooperatives) is about twice as large as the effect of plants with nonlocal owners. We also explore implications for the environment of ethanol plants and the changes in land use that they induce.

Suggested Citation

  • Miao, Ruiqing, 2013. "Impact of Ethanol Plants on Local Land Use Change," Agricultural and Resource Economics Review, Cambridge University Press, vol. 42(2), pages 291-309, August.
    • Handle: RePEc:cup:agrerw:v:42:y:2013:i:02:p:291-309_00
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    Cited by:

    1. Tamás Mizik & Lajos Nagy & Zoltán Gabnai & Attila Bai, 2020. "The Major Driving Forces of the EU and US Ethanol Markets with Special Attention Paid to the COVID-19 Pandemic," Energies, MDPI, vol. 13(21), pages 1-22, October.
    2. Gardner, Grant & Sampson, Gabriel S., . "Land Value Impacts of Ethanol Market Expansion by Irrigation Status," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(3).
    3. 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), pages 1-15, August.
    4. Stevens, Andrew, "undated". "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.
    5. Le, Hoanh & Gálvez-Soriano, Oscar, 2024. "Impact of the renewable fuel standard on Midwest farmland values," 2024 Annual Meeting, July 28-30, New Orleans, LA 343763, Agricultural and Applied Economics Association.
    6. Si, Chengyu & Nadolnyak, Denis, "undated". "The Effects of Government Payments on Agricultural Land Use," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266628, Southern Agricultural Economics Association.
    7. Junpyo Park, 2022. "Distance to Biorefinery Plants and Its Influence on Agricultural Land Value: Evidence from the United States Midwest Region," Land, MDPI, vol. 11(9), pages 1-14, September.
    8. Valentin Bellassen & Jean-Sauveur Ay & Mohamed Hilal, 2020. "The drivers of spatial cropping patterns in Burgundy," Working Papers hal-02894116, HAL.
    9. Stevens, Andrew W., 2021. "Ethanol Refineries and Local Land Use," 2021 Conference, August 17-31, 2021, Virtual 315304, International Association of Agricultural Economists.
    10. 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. 0, pages 1-15.
    11. repec:ags:aaea22:343763 is not listed on IDEAS
    12. Junpyo Park & John Anderson & Eric Thompson, 2019. "Land-Use, Crop Choice, and Proximity to Ethanol Plants," Land, MDPI, vol. 8(8), pages 1-14, July.
    13. Gaurav Arora & Peter T. Wolter & Hongli Feng & David A. Hennessy, 2016. "Role of Ethanol Plants in Dakotas Land Use Change: Incorporating Flexible Trends in the Difference-in-Difference Framework with Remotely-Sensed Data," Center for Agricultural and Rural Development (CARD) Publications 16-wp564, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    14. Arora, Gaurav & Wolter, Peter T. & Feng, Hongli & Hennessy, David A., 2015. "Role of Ethanol Plants in Dakotas’ Land Use Change: Analysis Using Remotely Sensed Data," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 206565, Agricultural and Applied Economics Association.
    15. Jennifer Ifft & Deepak Rajagopal & Ryan Weldzuis, 2019. "Ethanol Plant Location and Land Use: A Case Study of CRP and the Ethanol Mandate," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(1), pages 37-55, March.
    16. Ifft, Jennifer & Rajagopal, Deepak & Ryan, Weldzius, 2016. "The effect of the ethanol mandate on the Conservation Reserve Program," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236178, Agricultural and Applied Economics Association.
    17. Ani L. Katchova & Ana Claudia Sant’Anna, 2019. "Impact of Ethanol Plant Location on Corn Revenues for U.S. Farmers," Sustainability, MDPI, vol. 11(22), pages 1-13, November.
    18. Sampson, Gabriel & Gardner, Grant, 2021. "Land Value Impacts of Ethanol Market Expansion Differ by Irrigation Status," 2021 Annual Meeting, August 1-3, Austin, Texas 313854, Agricultural and Applied Economics Association.
    19. Austin, K.G. & Jones, J.P.H. & Clark, C.M., 2022. "A review of domestic land use change attributable to U.S. biofuel policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    20. Cornish, Brian & Miao, Ruiqing & Khanna, Madhu, 2020. "How will changes in Title II of the 2018 Farm Bill affect CRP Acreage?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304304, Agricultural and Applied Economics Association.
    21. Chad Fiechter & Binayak Kunwar & Guy Tchuente, 2024. "Monetary Incentives, Landowner Preferences: Estimating Cross-Elasticities in Farmland Conversion to Renewable Energy," Papers 2411.10600, arXiv.org.
    22. Chengyu Si & Yanru Li & Wei Jiang, 2023. "Effect of Insurance Subsidies on Agricultural Land-Use," IJERPH, MDPI, vol. 20(2), pages 1-12, January.
    23. Yanbing Wang & Michael S. Delgado & Juan Sesmero & Benjamin M. Gramig, 2020. "Market Structure and the Local Effects of Ethanol Expansion on Land Allocation: A Spatially Explicit Analysis," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1598-1622, October.

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