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Environmental Efficiency Among Corn Ethanol Plants

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  • Sesmero, Juan P.
  • Perrin, Richard K.
  • Fulginiti, Lilyan E.

Abstract

This study evaluates the environmental efficiency of seven recently constructed ethanol plants in the North Central region of the U.S., using nonparametric data envelopment analysis (DEA). Environmental efficiency is measured and decomposed into its technical and allocative sources. Results show that, on average, plants in our sample may be able to reduce GHG emissions by a maximum of 6% or by 3,116 tons per quarter. The economic (shadow) cost of reducing greenhouse gas emissions reveals that, at current activity levels, plants may have room for simultaneous improvement of environmental efficiency and economic profitability.

Suggested Citation

  • Sesmero, Juan P. & Perrin, Richard K. & Fulginiti, Lilyan E., 2012. "Environmental Efficiency Among Corn Ethanol Plants," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 130167, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:130167
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    File URL: http://ageconsearch.umn.edu/record/130167/files/SesmeroEtAl.pdf
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    References listed on IDEAS

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    1. Perrin, Richard K. & Fretes, Nickolas F. & Sesmero, Juan Pablo, 2009. "Efficiency in Midwest US corn ethanol plants: A plant survey," Energy Policy, Elsevier, vol. 37(4), pages 1309-1316, April.
    2. Tim Coelli & Ludwig Lauwers & Guido Huylenbroeck, 2007. "Environmental efficiency measurement and the materials balance condition," Journal of Productivity Analysis, Springer, vol. 28(1), pages 3-12, October.
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    Cited by:

    1. Wettemann, Patrick Johannes Christopher & Latacz-Lohmann, Uwe, 2017. "An efficiency-based concept to assess potential cost and greenhouse gas savings on German dairy farms," Agricultural Systems, Elsevier, vol. 152(C), pages 27-37.
    2. Mallory, Mindy L. & Irwin, Scott H. & Hayes, Dermot J., 2012. "How Market Efficiency and the Theory of Storage Link Corn and Ethanol Markets Energy Economics," ISU General Staff Papers 201211010700001537, Iowa State University, Department of Economics.
    3. Wettemann, Patrick, 2015. "Die Entwicklung der Produktivit├Ąt von Marktfruchtbetrieben unter Ber├╝cksichtigung von Treibhausgasemissionen," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209213, German Association of Agricultural Economists (GEWISOLA).
    4. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    5. Wamisho, Kassu, 2012. "The Shadow Price of GHG Reduction in Corn Ethanol Plants," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124719, Agricultural and Applied Economics Association.
    6. Wamisho, Kassu, 2012. "The Shadow Price of GHG Reduction in Corn Ethanol Plants," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126862, International Association of Agricultural Economists.

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    Keywords

    Research and Development/Tech Change/Emerging Technologies; Resource /Energy Economics and Policy;

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