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Spatial Competition and Ethanol Plant Location Decisions

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  • Camilo Sarmiento
  • William W. Wilson
  • Bruce Dahl

Abstract

This article estimates factors that impact location decisions by new ethanol plants using logistic regression analysis and spatial correlation techniques. The results indicate that location decisions are impacted by the agricultural characteristics of a county, competition, and state-level subsidies. Spatial competition is particularly important. Existence of a competing ethanol plant reduces the likelihood of making a positive location decision and this impact decreases with distance. State-level subsidies are significant and a very important factor impacting ethanol location decisions.
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Suggested Citation

  • Camilo Sarmiento & William W. Wilson & Bruce Dahl, 2012. "Spatial Competition and Ethanol Plant Location Decisions," Agribusiness, John Wiley & Sons, Ltd., vol. 28(3), pages 260-273, June.
  • Handle: RePEc:wly:agribz:v:28:y:2012:i:3:p:260-273
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    1. Camilo Sarmiento & William W. Wilson, 2005. "Spatial Modeling in Technology Adoption Decisions: The Case of Shuttle Train Elevators," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1034-1045.
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    Cited by:

    1. 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.
    2. Katchova, Ani L., 2011. "Are Local Corn Prices Affected by the Location of Ethanol Biorefineries?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114769, European Association of Agricultural Economists.
    3. 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.

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