IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/275921.html
   My bibliography  Save this paper

Building a Bioethanol Market in Mexico

Author

Listed:
  • Nunez, H.

Abstract

This article aims to develop a framework to forecast bioethanol policies impacts a decade ahead in Mexico, where there have been several attempts to introduce biofuels into the market but so far no success. Technically, an endogenous-price mathematical programming model is developed emphasizing the Mexican agricultural and fuel sectors, which are embedded in a multi-region, multi-product, spatial partial equilibrium model of the world economy. There is a module for the U.S. and another for ROW. Mexico is disaggregated into 193 crop districts. Production functions are specified for 14 major crops and pasture. Bioethanol can be produced both from a dedicated crop and from agroindustrial residues. Three policy alternatives are considered as well as a base case in which, as now, liquid fuels are all derived from fossil sources. The rest alternative consists of subsidies to biofuel producers, the second of blending mandates and the third of both combined. Biofuel imports are allowed in all cases. Results show some losses for fuel and agricultural consumers, that are not o set by both ethanol producer and GHG emissions reduction gains. This suggests that some compensating redistribution may be needed if these policies are to be seen as politically sustainable.

Suggested Citation

  • Nunez, H., 2018. "Building a Bioethanol Market in Mexico," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275921, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:275921
    DOI: 10.22004/ag.econ.275921
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/275921/files/2455.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jacinto F. Fabiosa & John C. Beghin & Fengxia Dong & JAmani Elobeid & Simla Tokgoz & Tun-Hsiang Yu, 2010. "Land Allocation Effects of the Global Ethanol Surge: Predictions from the International FAPRI Model," Land Economics, University of Wisconsin Press, vol. 86(4), pages 687-706.
    2. Larry J. Martin, 1981. "Quadratic Single And Multi-Commodity Models Of Spatial Equilibrium: A Simplified Exposition," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 29(1), pages 21-48, February.
    3. Rendon-Sagardi, Miguel A. & Sanchez-Ramirez, Cuauhtemoc & Cortes-Robles, Guillermo & Alor-Hernandez, Giner & Cedillo-Campos, Miguel G., 2014. "Dynamic analysis of feasibility in ethanol supply chain for biofuel production in Mexico," Applied Energy, Elsevier, vol. 123(C), pages 358-367.
    4. Hayri Önal & Bruce A. McCarl, 1991. "Exact Aggregation in Mathematical Programming Sector Models," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 319-334, July.
    5. Roger D. Norton & Gerhard W. Schiefer, 1980. "Agricultural sector programming models: A review," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 7(3), pages 229-265.
    6. Galindo, Luis Miguel, 2005. "Short- and long-run demand for energy in Mexico: a cointegration approach," Energy Policy, Elsevier, vol. 33(9), pages 1179-1185, June.
    7. Bruce A. McCarl & Thomas H. Spreen, 1980. "Price Endogenous Mathematical Programming As a Tool for Sector Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 87-102.
    8. Havranek, Tomas & Irsova, Zuzana & Janda, Karel, 2012. "Demand for gasoline is more price-inelastic than commonly thought," Energy Economics, Elsevier, vol. 34(1), pages 201-207.
    9. Brown, Mark G., 2010. "European Demand for Orange Juice," Research papers 104349, Florida Department of Citrus.
    10. Nuñez, Hector M. & Önal, Hayri, 2016. "An economic analysis of transportation fuel policies in Brazil: Fuel choice, land use, and environmental impacts," Energy Economics, Elsevier, vol. 55(C), pages 319-331.
    11. Xiaoguang Chen & Hayri Önal, 2012. "Modeling Agricultural Supply Response Using Mathematical Programming and Crop Mixes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(3), pages 674-686.
    12. William H. Meyers & S. Devadoss & Michael D. Helmar, 1991. "World Soybean Trade Model: Specification, Estimation, and Validation, The," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 91-tr23, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    13. Crôtte, Amado & Noland, Robert B. & Graham, Daniel J., 2010. "An analysis of gasoline demand elasticities at the national and local levels in Mexico," Energy Policy, Elsevier, vol. 38(8), pages 4445-4456, August.
    14. Valdez-Vazquez, Idania & Acevedo-Benítez, Jorge A. & Hernández-Santiago, Cuitlahuac, 2010. "Distribution and potential of bioenergy resources from agricultural activities in Mexico," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 2147-2153, September.
    15. Hector M. Nuñez & Hayri Önal & Madhu Khanna, 2013. "Land use and economic effects of alternative biofuel policies in Brazil and the United States," Agricultural Economics, International Association of Agricultural Economists, vol. 44(4-5), pages 487-499, July.
    16. William H. Meyers & S. Devadoss & Michael D. Helmar, 1991. "World Soybean Trade Model: Specification, Estimation, and Validation, The," Center for Agricultural and Rural Development (CARD) Publications 91-tr23, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    17. Bruce A. McCarl, 1982. "Cropping Activities in Agricultural Sector Models: A Methodological Proposal," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 768-772.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Crop Production/Industries; International Relations/Trade; Marketing;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae18:275921. 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). General contact details of provider: http://edirc.repec.org/data/iaaeeea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.