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Economics of Ethanol Production in the United States

Author

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  • Kane, Sally M.
  • Reilly, John M.

Abstract

Expansion of the U.S. ethanol industry hinges largely on extension of the Federal fuel excise tax exemption and corn prices. For ethanol to be competitive in the 1990's without the Federal subsidy, crude oil prices would have to increase substantially. This report examines production costs and the relative competitiveness of the ethanol industry. The report evaluates structural characteristics of the industry, including economies of scale and the relative economics of the two primary manufacturers, wet- and dry-mill plants.

Suggested Citation

  • Kane, Sally M. & Reilly, John M., 1989. "Economics of Ethanol Production in the United States," Agricultural Economic Reports 308070, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:308070
    DOI: 10.22004/ag.econ.308070
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    File URL: https://ageconsearch.umn.edu/record/308070/files/aer607.pdf
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    References listed on IDEAS

    as
    1. LeBlanc, Michael & Reilly, John, 1988. "Ethanol: Economic and Policy Tradeoffs," Agricultural Economic Reports 308040, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Paul Gallagher & Guenter Schamel & Hosein Shapouri & Heather Brubaker, 2006. "The international competitiveness of the U.S. corn-ethanol industry: A comparison with sugar-ethanol processing in Brazil," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 109-134.
    2. Hettinga, W.G. & Junginger, H.M. & Dekker, S.C. & Hoogwijk, M. & McAloon, A.J. & Hicks, K.B., 2009. "Understanding the reductions in US corn ethanol production costs: An experience curve approach," Energy Policy, Elsevier, vol. 37(1), pages 190-203, January.
    3. Cruce, Jesse R. & Quinn, Jason C., 2019. "Economic viability of multiple algal biorefining pathways and the impact of public policies," Applied Energy, Elsevier, vol. 233, pages 735-746.
    4. Crooks, Anthony C., 1997. "Cooperatives and New Uses for Agricultural Products: An Assessment of the Fuel Ethanol Industry," Research Reports 279994, United States Department of Agriculture, Rural Development.
    5. Juan Manuel Dominguez Andrade, 2012. "El Mercado Bio-combustible : Escenarios hipotéticos," Revista de Economía del Caribe 10280, Universidad del Norte.
    6. Juan Manuel Domínguez, 2015. "An Analysis of the Technological Structure of Refineries and Blenders: Estimation of the Leontief Multiproduct Cost Function and Reservation Prices," Revista Equidad y Desarrollo, Universidad de la Salle, May.

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    2. Paul Gallagher & Guenter Schamel & Hosein Shapouri & Heather Brubaker, 2006. "The international competitiveness of the U.S. corn-ethanol industry: A comparison with sugar-ethanol processing in Brazil," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 109-134.
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