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Plant location decisions in the ethanol industry: a dynamic and spatial analysis

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  • Jason Wood

    (Agriculture and Forestry, Government of Alberta)

  • James Nolan

    (University of Saskatchewan)

Abstract

As a process relevant to the evolution of modern agriculture in North America, in this research we examine simulated ethanol plant location decisions. Due to the inherent complexity of these decisions, we develop an agent based simulation framework in order to identify relevant factors applicable to both current and future plant location decisions. For broader applicability, we chose a major agricultural production region (the province of Saskatchewan in Western Canada) as the area for analysis. The simulation also allows us to examine the consequences of a counterfactual scenario involving the removal of government subsidies to the ethanol industry. Overall, we generate several interesting predictions concerning the evolution of future plant sizing and industry concentration in the ethanol sector across North America.

Suggested Citation

  • Jason Wood & James Nolan, 2021. "Plant location decisions in the ethanol industry: a dynamic and spatial analysis," Computational Economics, Springer;Society for Computational Economics, vol. 58(1), pages 103-132, June.
  • Handle: RePEc:kap:compec:v:58:y:2021:i:1:d:10.1007_s10614-020-09984-2
    DOI: 10.1007/s10614-020-09984-2
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    References listed on IDEAS

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