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Drought, Biofuel, and Livestock

Author

Listed:
  • Hao, Na
  • Seong, Byeongchan
  • Park, Cheolwoo
  • Colson, Gregory
  • Karali, Berna
  • Wetzstein, Michael

Abstract

The 2012 drought in the U.S. Midwest resulted in volatile crop prices. With field crops constituting a major input in livestock production, livestock producers sought a waiver to Renewable Fuel Standard biofuel mandates. They believed such a waiver would mitigate crop-price volatility; given crops are major inputs in biofuel production. The U.S. Environmental Protection Agency (EPA) denied the waiver under the belief that the waiver would have minimal if any impact on mitigating price volatility. Employing a VECM, the objective is to investigate if it was prudent for the EPA to reject the waiver. Results generally support EPA's conclusion that the waiver relaxing the biofuel mandate would have minimal impact.
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Suggested Citation

  • Hao, Na & Seong, Byeongchan & Park, Cheolwoo & Colson, Gregory & Karali, Berna & Wetzstein, Michael, 2013. "Drought, Biofuel, and Livestock," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149957, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea13:149957
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:eneeco:v:64:y:2017:i:c:p:346-352 is not listed on IDEAS
    2. Chiu, Fan-Ping & Hsu, Chia-Sheng & Ho, Alan & Chen, Chi-Chung, 2016. "Modeling the price relationships between crude oil, energy crops and biofuels," Energy, Elsevier, vol. 109(C), pages 845-857.

    More about this item

    Keywords

    climate; cattle; corn; drought; ethanol; hog; livestock markets; poultry; soybean; Agribusiness; Agricultural and Food Policy; Consumer/Household Economics; Crop Production/Industries; Demand and Price Analysis; Environmental Economics and Policy; Food Security and Poverty; Livestock Production/Industries; Marketing; Political Economy; Production Economics; Resource /Energy Economics and Policy;

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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