An Analysis As To The Causal Relationship Between Bioethanol Expansion And Agricultural Crop Acreage Allocation In The United States
This study analyzes the historical price response of individual crop acreage in order to determine the impacts of an expansionist policy in bioethanol production on the U.S. agricultural industry. In doing this, this study provides an economic foundation by using a traditional Rotterdam model to simulate a cropland demand system. Within the developed framework, this study estimates own and cross acreage elasticities and scale elasticities to show the impacts of acreage values on crop production and the relationship between total cropland and individual crop acreage. This study found that rice farming is most inelastic to own acreage value. Soybeans, hay, and wheat are shown to be good substitute crops for corn. Corn, soybeans, hay, wheat, cotton, barley, and rice are shown to have positive scale elasticity, while sorghum and oats are shown to have negative scale elasticities. The scale effects of corn, soybeans, hay, and wheat are relatively large, while those of cotton, sorghum, barley, rice, and oats are relatively small.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barten, Anton P, 1993. "Consumer Allocation Models: Choice of Functional Form," Empirical Economics, Springer, vol. 18(1), pages 129-58.
- Carlos Arnade & David Kelch, 2007. "Estimation of Area Elasticities from a Standard Profit Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 727-737.
- Lewbel, Arthur, 1996. "Aggregation without Separability: A Generalized Composite Commodity Theorem," American Economic Review, American Economic Association, vol. 86(3), pages 524-43, June.
- Giancarlo Moschini & Daniele Moro & Richard D. Green, 1994.
"Maintaining and Testing Separability in Demand Systems,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 76(1), pages 61-73.
- Moschini, GianCarlo & Moro, D. & Green, Richard D., 1994. "Maintaining and Testing Separability in Demand Systems," Staff General Research Papers 11247, Iowa State University, Department of Economics.
- B. J. Morzuch & R. D. Weaver & P. G. Helmberger, 1980. "Wheat Acreage Supply Response under Changing Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 29-37.
- K. D. Meilke & R. E. Kramar, 1976. "Acreage Response In Ontario," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 24(1), pages 51-66, 02.
- Torre Ugarte, Daniel de la & English, Burton C. & Jensen, Kimberly L., 2007.
"Sixty Billion Gallons by 2030: Economic and Agricultural Impacts of Ethanol and Biodiesel Expansion,"
2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN
9709, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Daniel G. De La Torre Ugarte & Burton C. English & Kim Jensen, 2007. "Sixty Billion Gallons by 2030: Economic and Agricultural Impacts of Ethanol and Biodiesel Expansion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1290-1295.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea08:6343. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.