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Impact of the Expansion of Brazilian FFV Utilization and U.S. Biofuel Policy Amendment on the World Sugar and Corn Markets: An Econometric Simulation Approach

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  • Koizumi, Tatsuji
  • Ohga, Keiji

Abstract

The production and utilization of biofuels is promoted in many countries and regions, with Brazil and the USA being the two main bioethanol producing countries. It is estimated that both markets will expand as a result of their biofuel programs. Our study is the first to evaluate how expansion of FFV utilization in Brazil and the U.S. biofuel policy amendment will impact the world bioethanol, sugar, and corn markets. We utilize a world bioethanol market model which is linked to the world sugar and corn markets models. As a result of our econometric analysis, we conclude that both the expansion of Brazilian FFV utilization and the U.S. biofuel policy amendment are predicted to impact not only the bioethanol market but also the world corn and sugar markets.

Suggested Citation

  • Koizumi, Tatsuji & Ohga, Keiji, 2009. "Impact of the Expansion of Brazilian FFV Utilization and U.S. Biofuel Policy Amendment on the World Sugar and Corn Markets: An Econometric Simulation Approach," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 11, pages 1-24.
    • Handle: RePEc:ags:jpjjre:242132
    DOI: 10.22004/ag.econ.242132
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    References listed on IDEAS

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    1. Daniel G. De La Torre Ugarte & Burton C. English & Kim Jensen, 2007. "Sixty Billion Gallons by 2030: Economic and Agricultural Impacts of Ethanol and Biodiesel Expansion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1290-1295.
    2. Koizumi, Tatsuji & Ohga, Keiji, 2006. "Impacts of the Chinese Fuel-Ethanol Program on the World Corn Market: An Econometric Simulation Approach," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 8, pages 1-15.
    3. Lihong Lu McPhail & Bruce A. Babcock, 2008. "Short-Run Price and Welfare Impacts of Federal Ethanol Policies," Center for Agricultural and Rural Development (CARD) Publications 08-wp468, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Tokgoz, Simla & Elobeid, Amani E., 2007. "Understanding the Underlying Fundamentals of Ethanol Markets: Linkages between Energy and Agriculture," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9795, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Koizumi, Tatsuji & Yanagishima, Koji, 2005. "Impacts of the Brazilian Ethanol Program on the World Ethanol and Sugar Market: An Econometric Simulation Approach," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 7, pages 1-17.
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