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Impacts of the Chinese Fuel-Ethanol Program on the World Corn Market: An Econometric Simulation Approach

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  • Koizumi, Tatsuji
  • Ohga, Keiji

Abstract

The Chinese Government has promoted the national fuel-ethanol program since 2002 to deal with the energy security and air pollution problem. Inferior corn has been allocated as the major raw material to produce fuel-ethanol, but is inadequate for this purpose. Contrary to the national government's decision, the Chinese fuel-ethanol facilities in Heilongjiang and Jilin use normal corn, which is used for feed, food and industrial raw material. This study examines the impacts the Chinese fuel-ethanol program would have on domestic and international corn markets, by applying a newly developed Chinese corn market model. Our simulation suggests moderate impacts of the problem on the world corn market.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:jpjjre:242141
    DOI: 10.22004/ag.econ.242141
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    References listed on IDEAS

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    1. 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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    Cited by:

    1. Koizumi, Tatsuji, 2013. "Biofuel and food security in China and Japan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 102-109.
    2. 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.
    3. Yu, Tun-Hsiang (Edward) & Hart, Chad E., 2009. "Impact of Biofuel Industry Expansion on Grain Utilization and Distribution: Preliminary Results of Iowa Grain and Biofuel Survey," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46847, Southern Agricultural Economics Association.
    4. Koizumi, Tatsuji & Ohga, Keiji, 2008. "Impacts of the Brazilian Bio-Diesel Program on the World Soybean and Soybean Products Market: An Econometric Simulation Approach," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 10, pages 1-21.

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