Analysis of the Link between Ethanol, Energy, and Crop Markets, An
This study analyzes the impact of price shocks in three input and output markets critical to ethanol: gasoline, corn, and sugar. We investigate the impact of these shocks on ethanol and related agricultural markets in the United States and Brazil. We find that the composition of a country's vehicle fleet determines the direction of the response of ethanol consumption to changes in the gasoline price. We also find that a change in feedstock costs affects the profitability of ethanol producers and the domestic ethanol price. In Brazil, where two commodities compete for sugarcane, changes in the sugar market affect the competing ethanol market.
|Date of creation:||Nov 2006|
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- Ogenis Magno Brilhante, 1997. "Brazil's Alcohol Programme: From an Attempt to Reduce Oil Dependence in the Seventies to the Green Arguments of the Nineties," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 40(4), pages 435-449.
- Moreira, Jose R. & Goldemberg, Jose, 1999. "The alcohol program," Energy Policy, Elsevier, vol. 27(4), pages 229-245, April.
- Martines-Filho, Joao Gomes & Burnquist, Heloisa Lee & Vian, Carlos Eduardo de Freitas, 2006. "Bioenergy and the Rise of Sugarcane-Based Ethanol in Brazil," Choices, Agricultural and Applied Economics Association, vol. 21(2).
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