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International Trade Patterns and Policy for Ethanol in the United States

In: Handbook of Bioenergy Economics and Policy

Author

Listed:
  • Hyunok Lee

    (University of California)

  • Daniel A. Sumner

    (University of California)

Abstract

The US trade policy for ethanol affects imports and all aspects of ethanol production and use. The paper reviews U.S. trade policy for ethanol and then examines the pattern of imports of ethanol. Despite high tariff barriers the U.S. is a major ethanol importer and we document the pattern of ethanol imports over the past decades. We then show how ethanol imports have responded to market conditions. We find that the demand for imports is likely to have been very elastic in recent years. Our econometric estimates show how ethanol imports have responded to market conditions. We find a significant supply elasticity for imports into the U.S. of about 3.0. Finally we use the forgoing analysis to discuss potential impacts of trade policy changes under alternative market conditions that depend crucially on domestic biofuel policies.

Suggested Citation

  • Hyunok Lee & Daniel A. Sumner, 2010. "International Trade Patterns and Policy for Ethanol in the United States," Natural Resource Management and Policy, in: Madhu Khanna & Jürgen Scheffran & David Zilberman (ed.), Handbook of Bioenergy Economics and Policy, chapter 0, pages 327-345, Springer.
    • Handle: RePEc:spr:nrmchp:978-1-4419-0369-3_19
    DOI: 10.1007/978-1-4419-0369-3_19
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    Citations

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    Cited by:

    1. Christina Korting & Harry de Gorter & David R Just, 2019. "Who Will Pay for Increasing Biofuel Mandates? Incidence of the Renewable Fuel Standard Given a Binding Blend Wall," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(2), pages 492-506.
    2. Derek Lemoine, 2017. "Escape from Third-Best: Rating Emissions for Intensity Standards," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 789-821, August.
    3. Lade, Gabriel E & Lawell, C-Y Cynthia Lin, 2015. "Mandating green: On the Design of Renewable Fuel Policies and Cost Containment Mechanisms," Institute of Transportation Studies, Working Paper Series qt5zj382t4, Institute of Transportation Studies, UC Davis.
    4. Ghoddusi, Hamed & Rodivilov, Alexander & Roy, Mandira, 2021. "Income elasticity of demand versus consumption: Implications for energy policy analysis," Energy Economics, Elsevier, vol. 95(C).
    5. Gabriel E. Lade & C.-Y. Cynthia Lin Lawell, 2021. "The Design of Renewable Fuel Mandates and Cost Containment Mechanisms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(2), pages 213-247, June.
    6. Korting, Christina & Just, David R., 2017. "Demystifying RINs: A partial equilibrium model of U.S. biofuel markets," Energy Economics, Elsevier, vol. 64(C), pages 353-362.

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