IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v12y1994i3p22-32.html
   My bibliography  Save this article

Increased Industrial Uses Of Agricultural Commodities Policy, Trade And Ethanol

Author

Listed:
  • HYUNOK LEE
  • JOSEPH W. GLAUBER
  • DANIEL A. SUMNER

Abstract

Using agricultural feedstocks for industrial products affects domestic and international agricultural markets, all of which are encumbered with complex policies. This article examines the interaction of three seemingly unrelated policies: the Clean Air Act, the U.S. corn program, and European Union agricultural subsidies. More ethanol production, resulting from new regulations associated with the Clean Air Act, increases the use of U.S. corn and increases the supply of corn gluten feed, an ethanol co‐product. Corn gluten feed is primarily exported to Europe under a loophole in European Union trade barriers. But recent reform of European Union farm policy will lower the price of the European grain for which corn gluten feed is a substitute. This development lowers prices for a major ethanol co‐product and thus makes ethanol itself less profitable just as the demand for the fuel is expanding. NAFTA, GATT, and new technologies also play cameo roles in the story.

Suggested Citation

  • Hyunok Lee & Joseph W. Glauber & Daniel A. Sumner, 1994. "Increased Industrial Uses Of Agricultural Commodities Policy, Trade And Ethanol," Contemporary Economic Policy, Western Economic Association International, vol. 12(3), pages 22-32, July.
    • Handle: RePEc:bla:coecpo:v:12:y:1994:i:3:p:22-32
    DOI: 10.1111/j.1465-7287.1994.tb00431.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.1994.tb00431.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1465-7287.1994.tb00431.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. House, Robert & Peters, Mark & Baumes, Harry & Disney, W. Terry, 1993. "Ethanol and Agriculture: Effect of Increased Production on Crop and Livestock Sectors," Agricultural Economic Reports 262028, United States Department of Agriculture, Economic Research Service.
    2. ARTHUR FRAAS & ALBERT McGARTLAND, 1990. "Alternative Fuels For Pollution Control: An Empirical Evaluation Of Benefits And Costs," Contemporary Economic Policy, Western Economic Association International, vol. 8(1), pages 62-74, January.
    3. Robert D. Rowe & Michael G. Shelby & Joshua B. Epel & Ari Michelsen, 1990. "Using Oxygenated Fuels To Mitigate Carbon Monoxide Air Pollution: The Case Of Denver," Contemporary Economic Policy, Western Economic Association International, vol. 8(1), pages 39-53, January.
    4. Hohmann, Neil & Rendleman, C. Matthew, 1993. "Emerging Technologies in Ethanol Production," Agricultural Information Bulletins 309679, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luchansky, Matthew S. & Monks, James, 2009. "Supply and demand elasticities in the U.S. ethanol fuel market," Energy Economics, Elsevier, vol. 31(3), pages 403-410, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Crooks, Anthony C., 1997. "Cooperatives and New Uses for Agricultural Products: An Assessment of the Fuel Ethanol Industry," Research Reports 279994, United States Department of Agriculture, Rural Development.
    2. Jacinto F. Fabiosa & John C. Beghin & Fengxia Dong & JAmani Elobeid & Simla Tokgoz & Tun-Hsiang Yu, 2010. "Land Allocation Effects of the Global Ethanol Surge: Predictions from the International FAPRI Model," Land Economics, University of Wisconsin Press, vol. 86(4), pages 687-706.
    3. Ribaudo, Marc O. & Heimlich, Ralph & Claassen, Roger & Peters, Mark, 2001. "Least-cost management of nonpoint source pollution: source reduction versus interception strategies for controlling nitrogen loss in the Mississippi Basin," Ecological Economics, Elsevier, vol. 37(2), pages 183-197, May.
    4. Akinfenwa, Samson O. & Qasmi, Bashir A., 2014. "Ethanol, the Agricultural Economy, and Rural Incomes in the United States: A Bivariate Econometric Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(2), pages 1-15, August.
    5. Akinfenwa, Samson O. & Qasmi, Bashir A., 2014. "Ethanol, the Agricultural Economy, and Rural Incomes in the United States: A Bivariate Econometric Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0, pages 1-15.
    6. E. Giraud Héraud & Chantal Le Mouël & Vincent Requillart, 1993. "Réforme céréalière européenne et marché mondial du corn gluten feed. Quelles stratégies pour les États-Unis ?," Post-Print hal-02283442, HAL.
    7. Johansson, Robert & Peters, Mark & House, Robert, 2007. "Regional Environment and Agriculture Programming Model," Technical Bulletins 184314, United States Department of Agriculture, Economic Research Service.
    8. Rendleman, C. Matthew & Shapouri, Hosein, 2007. "New Technologies in Ethanol Production," Agricultural Economic Reports 308483, United States Department of Agriculture, Economic Research Service.
    9. Petrulis, Mindy & Sommer, Judith & Hines, Fred, 1993. "Ethanol Production and Employment," Agricultural Information Bulletins 309693, United States Department of Agriculture, Economic Research Service.
    10. Wang, Quanlu & Sperling, Daniel & Olmstead, Janis, 1993. "Emission Control Cost-Effectiveness of Alternative-Fuel Vehicles," University of California Transportation Center, Working Papers qt3bw4t5pw, University of California Transportation Center.
    11. Sullivan, Patrick & Hellerstein, Daniel & Hansen, LeRoy T. & Johansson, Robert C. & Koenig, Steven R. & Lubowski, Ruben N. & McBride, William D. & McGranahan, David A. & Roberts, Michael J. & Vogel, S, 2004. "The Conservation Reserve Program: Economic Implications for Rural America," Agricultural Economic Reports 33987, United States Department of Agriculture, Economic Research Service.
    12. Ribaudo, Marc O. & Heimlich, Ralph & Peters, Mark, 2005. "Nitrogen sources and Gulf hypoxia: potential for environmental credit trading," Ecological Economics, Elsevier, vol. 52(2), pages 159-168, January.
    13. Cooper, Joseph C. & Peters, Mark & Claassen, Roger, 2003. "Effects Of Agri-Environmental Payment Policies On Agricultural Trade," 2003 Annual meeting, July 27-30, Montreal, Canada 22240, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Alston, Julian M. & Beach, E. Douglas, 1996. "Market distortions and the benefits from research into new uses for agricultural commodities: Ethanol from corn," Resource and Energy Economics, Elsevier, vol. 18(1), pages 1-29, March.
    15. Gallagher, Paul W. & Shapouri, Hosein & Price, Jeffrey & Schamel, Guenter & Brubaker, Heather, 2003. "Some long-run effects of growing markets and renewable fuel standards on additives markets and the US ethanol industry," Journal of Policy Modeling, Elsevier, vol. 25(6-7), pages 585-608, September.
    16. Claassen, Roger & Hansen, LeRoy T. & Peters, Mark & Breneman, Vincent E. & Weinberg, Marca & Cattaneo, Andrea & Feather, Peter & Gadsby, Dwight M. & Hellerstein, Daniel & Hopkins, Jeffrey W. & Johnsto, 2001. "Agri-Environmental Policy at the Crossroads: Guideposts on a Changing Landscape," Agricultural Economic Reports 33983, United States Department of Agriculture, Economic Research Service.
    17. Gallagher, Paul W. & Shapouri, Hosein & Price, Jeffrey & Schamel, Guenter & Brubaker, Heather, 2003. "Some long-run effects of growing markets and renewable fuel standards on additives markets and the US ethanol industry," ISU General Staff Papers 200309010700001445, Iowa State University, Department of Economics.
    18. Rask, Kevin, 2004. "Clean air policy and oxygenated fuels: do we get what we pay for?," Energy Economics, Elsevier, vol. 26(1), pages 161-177, January.
    19. Hettinga, W.G. & Junginger, H.M. & Dekker, S.C. & Hoogwijk, M. & McAloon, A.J. & Hicks, K.B., 2009. "Understanding the reductions in US corn ethanol production costs: An experience curve approach," Energy Policy, Elsevier, vol. 37(1), pages 190-203, January.
    20. Thomas J. Lareau, 1990. "The Economics Of Alternative Fuel Use: Substituting Methanol For Gasoline," Contemporary Economic Policy, Western Economic Association International, vol. 8(4), pages 138-152, October.

    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:bla:coecpo:v:12:y:1994:i:3:p:22-32. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.