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Impact of Ethanol Policies on Livestock Production in the United States

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  • Miljkovic, Dragan
  • Shaik, Saleem
  • Braun, Dane

Abstract

This study was conducted to analyze the direct and indirect effects of ethanol policy on livestock production. Results of the theoretical model indicate the possibility of ethanol policy indirectly affecting livestock production. Econometric results show a possibility of ethanol policy indirectly impacting cattle production through the RFS’s influence on corn quantity. Policy makers’ intentions with ethanol policy likely were to increase ethanol consumption rather than to directly affect cattle production. However, results of the reduced form equation indicate that the RFS increased the cattle quantity, which represents a direct outcome of ethanol policy on cattle production. Policy makers can utilize the information provided in this study to understand the effects of ethanol policy on multiple agricultural markets. Understanding the existence of indirect and direct effects of newly designed policies on non-targeted markets adds credibility to the policy making process.

Suggested Citation

  • Miljkovic, Dragan & Shaik, Saleem & Braun, Dane, 2011. "Impact of Ethanol Policies on Livestock Production in the United States," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98783, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea11:98783
    DOI: 10.22004/ag.econ.98783
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    1. Taheripour, Farzad & Hertel, Thomas W. & Tyner, Wallace E. & Beckman, Jayson F. & Birur, Dileep K., 2008. "Biofuels and their By-Products: Global Economic and Environmental Implications," Conference papers 331685, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    More about this item

    Keywords

    Agricultural and Food Policy; Demand and Price Analysis; Livestock Production/Industries; Production Economics;
    All these keywords.

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