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Ethanol's role: An economic assessment

Author

Listed:
  • Sally Kane

    (Agricultural Economists in the Resources and Technology Division, Economic Research Service, USDA)

  • John Reilly

    (Agricultural Economists in the Resources and Technology Division, Economic Research Service, USDA)

  • Michael Leblanc

    (Agricultural Economists in the Resources and Technology Division, Economic Research Service, USDA)

  • James Hrubovcak

    (Agricultural Economists in the Resources and Technology Division, Economic Research Service, USDA)

Abstract

Expansion of the ethanol industry depends on a mix of low grain prices, stable or increasing petroleum prices through the 1990s, and assurance that subsidies for production will continue through 2000 or beyond. While expansion of the ethanol industry would increase ethanol's contribution to energy security, reduce air quality problems associated with carbon monoxide, and support farm income through increases in corn prices, alternative means of achieving these goals exist. This article assesses factors affecting ethanol's competitiveness and the tradeoffs involved in using ethanol to meet national goals.

Suggested Citation

  • Sally Kane & John Reilly & Michael Leblanc & James Hrubovcak, 1989. "Ethanol's role: An economic assessment," Agribusiness, John Wiley & Sons, Ltd., vol. 5(5), pages 505-522.
    • Handle: RePEc:wly:agribz:v:5:y:1989:i:5:p:505-522
    DOI: 10.1002/1520-6297(198909)5:5<505::AID-AGR2720050509>3.0.CO;2-B
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    Cited by:

    1. Gallagher, Paul & Johnson, Donald, 1999. "Some New Ethanol Technology: Cost Competition and Adoption Effects in the Petroleum Market," ISU General Staff Papers 199901010800001274, Iowa State University, Department of Economics.
    2. Gallagher, Paul & Shapouri, Hosein & Brubaker, Heather, 2007. "Scale, Organization, and Profitability of Ethanol Processing," ISU General Staff Papers 200703010800001439, Iowa State University, Department of Economics.
    3. 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.
    4. Miller, Harold W. & Williams, Gary W., 1996. "SOYDIESEL: Potential Impacts on the U.S. and World Soybean and Soybean Product Markets," Reports 257937, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    5. Paul Gallagher & Guenter Schamel & Hosein Shapouri & Heather Brubaker, 2006. "The international competitiveness of the U.S. corn-ethanol industry: A comparison with sugar-ethanol processing in Brazil," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 109-134.
    6. Gallagher, Paul & Johnson, Donald L., 1995. "Some New Ethanol Technology: Cost Competition and Adoption Effects in the Petroleum Market," ISU General Staff Papers 199512010800001274, Iowa State University, Department of Economics.

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