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Ethanolomics: The Think-About's of the Mexican Ethanol Project

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  • Ricardo Cantú

Abstract

The Mexican Ethanol Project has the potential of power up rural economy, improve the environment quality, and substitute the non-renewable fossil energy resources. But the risk of not achieving these is latent: the market distorts that it could unleash can change the expected outcomes. Public policies, such as No Deforestation, Investments in Agricultural Productivity, and Ethanol Manufacture in situ, could help orientate the private incentives to increase social welfare. In a big proportion, PEMEX and the Mexican Federal Government would be directly, or indirectly, affected by the domestic ethanol production, opening a door for them to participate in it and avoid damage on their interests. But there's still a question to answer: how long it would take before these benefits could be felt?

Suggested Citation

  • Ricardo Cantú, 2007. "Ethanolomics: The Think-About's of the Mexican Ethanol Project," Working Papers 20073, Escuela de Graduados en Administración Pública y Políticas Públicas, Campus Monterrey, revised Aug 2007.
    • Handle: RePEc:egb:wpaper:20073
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    File URL: http://www.mty.itesm.mx/egap/deptos/cee/cieds/2007-3.pdf
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    More about this item

    Keywords

    ethanol; rural development; Mexico; public policies; oil crisis;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q29 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Other
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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