IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/201501010800005728.html
   My bibliography  Save this paper

Three essays on modeling biofuel feedstock supply

Author

Listed:
  • Zhou, Wei

Abstract

The general theme of this dissertation is modeling biofuel feedstock supply. All three essays focuses on different topics relating to the theme. The first essay considers supply of corn stover for a commercial production of a cellulosic ethanol plant. The economic trade-offs in determining the plant size under uncertain future corn stover yields and cellulosic ethanol prices are analyzed. We also estimate the impacts on optimal plant sizes under two payment schemes for corn stover procurement: plant pays for transportation cost and farmers pay for the transportation cost. My second essay analyzes the impact of ethanol mandates on corn prices. A rational expectations competitive storage model is built to capture the dynamic behavior of corn market and tradable permit market through which mandate is enforced. We use the model to estimate the impacts of alternative future ethanol mandate levels. Results indicate that future corn prices are about 6 percent lower with reduced mandates. The third paper presents a new model of agricultural supply which combines Positive Mathematical Programming (PMP) with the rational expectations storage model and compares methods in solving the combined model. We find that Smolyak collocation method performs better than Generalized Stochastic Simulation Algorithm considering computational time and accuracy in solving the multi-crop storage model.

Suggested Citation

  • Zhou, Wei, 2015. "Three essays on modeling biofuel feedstock supply," ISU General Staff Papers 201501010800005728, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genstf:201501010800005728
    as

    Download full text from publisher

    File URL: http://lib.dr.iastate.edu/cgi/viewcontent.cgi?article=5728&context=etd
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gouel, Christophe, 2013. "Optimal food price stabilisation policy," European Economic Review, Elsevier, vol. 57(C), pages 118-134.
    2. Kollmann, Robert & Maliar, Serguei & Malin, Benjamin A. & Pichler, Paul, 2011. "Comparison of solutions to the multi-country Real Business Cycle model," Journal of Economic Dynamics and Control, Elsevier, vol. 35(2), pages 186-202, February.
    3. Hikaru Hanawa Peterson & William G. Tomek, 2005. "How much of commodity price behavior can a rational expectations storage model explain?," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 289-303, November.
    4. Williams,Jeffrey C. & Wright,Brian D., 2005. "Storage and Commodity Markets," Cambridge Books, Cambridge University Press, number 9780521023399, October.
    5. Malin, Benjamin A. & Krueger, Dirk & Kubler, Felix, 2011. "Solving the multi-country real business cycle model using a Smolyak-collocation method," Journal of Economic Dynamics and Control, Elsevier, vol. 35(2), pages 229-239, February.
    6. Benjamin Malin & Dirk Krueger & Felix Kubler, 2007. "Computing Stochastic Dynamic Economic Models with a Large Number of State Variables: A Description and Application of a Smolyak-Collocation Method," NBER Technical Working Papers 0345, National Bureau of Economic Research, Inc.
    7. Kenneth L. Judd & Lilia Maliar & Serguei Maliar, 2011. "Numerically stable and accurate stochastic simulation approaches for solving dynamic economic models," Quantitative Economics, Econometric Society, vol. 2(2), pages 173-210, July.
    8. den Haan, Wouter J & Marcet, Albert, 1990. "Solving the Stochastic Growth Model by Parameterizing Expectations," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(1), pages 31-34, January.
    9. Krueger, Dirk & Kubler, Felix, 2004. "Computing equilibrium in OLG models with stochastic production," Journal of Economic Dynamics and Control, Elsevier, vol. 28(7), pages 1411-1436, April.
    10. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    11. Arfini, Filippo & Donati, Michele & Paris, Quirino, 2008. "Innovation in Estimation of Revenue and Cost Functions in PMP Using FADN Information at Regional Level," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44008, European Association of Agricultural Economists.
    12. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
    13. Nicholas Kaldor, 1939. "Speculation and Economic Stability," Review of Economic Studies, Oxford University Press, vol. 7(1), pages 1-27.
    14. Allen B. Paul, 1970. "The Pricing of Binspace—A Contribution to the Theory of Storage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(1), pages 1-12.
    15. Cafiero, Carlo & Bobenrieth H., Eugenio S.A. & Bobenrieth H., Juan R.A. & Wright, Brian D., 2011. "The empirical relevance of the competitive storage model," Journal of Econometrics, Elsevier, vol. 162(1), pages 44-54, May.
    16. Na Jin & Sergio Lence & Chad Hart & Dermot Hayes, 2012. "The Long-Term Structure of Commodity Futures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(3), pages 718-735.
    17. Christophe Gouel, 2013. "Comparing Numerical Methods for Solving the Competitive Storage Model," Computational Economics, Springer;Society for Computational Economics, vol. 41(2), pages 267-295, February.
    18. Pierre Mérel & Santiago Bucaram, 2010. "Exact calibration of programming models of agricultural supply against exogenous supply elasticities," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 37(3), pages 395-418, September.
    19. Roberts, Michael J. & Tran, A. Nam, 2012. "Commodity Price Adjustment in a Competitive Storage Model with an Application to the US Biofuel Policies," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124869, Agricultural and Applied Economics Association.
    20. Miranda, Mario J & Glauber, Joseph W, 1993. "Estimation of Dynamic Nonlinear Rational Expectations Models of Primary Commodity Markets with Private and Government Stockholding," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 463-470, August.
    21. Roberts, Michael J. & Tran, A. Nam, 2013. "Conditional Suspension of the US Ethanol Mandate using Threshold Price inside a Competitive Storage Model," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150717, Agricultural and Applied Economics Association.
    22. Michael K. Adjemian & Aaron Smith, 2012. "Using USDA Forecasts to Estimate the Price Flexibility of Demand for Agricultural Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(4), pages 978-995.
    23. Judd, Kenneth L., 1992. "Projection methods for solving aggregate growth models," Journal of Economic Theory, Elsevier, vol. 58(2), pages 410-452, December.
    24. Alexandre Gohin & Frédéric Chantreuil, 1999. "La programmation mathématique positive dans les modèles d'exploitation agricole : Principes et importance du calibrage," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 52, pages 59-78.
    25. Pierre Mérel & Leo K. Simon & Fujin Yi, 2011. "A Fully Calibrated Generalized Constant-Elasticity-of-Substitution Programming Model of Agricultural Supply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 936-948.
    26. Michael J. Roberts & Wolfram Schlenker, 2013. "Identifying Supply and Demand Elasticities of Agricultural Commodities: Implications for the US Ethanol Mandate," American Economic Review, American Economic Association, vol. 103(6), pages 2265-2295, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    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:isu:genstf:201501010800005728. 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: (Curtis Balmer). General contact details of provider: http://edirc.repec.org/data/deiasus.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.