IDEAS home Printed from https://ideas.repec.org/p/ags/saeasm/34879.html
   My bibliography  Save this paper

Economic Parameters for Corn Ethanol and Biodiesel Production

Author

Listed:
  • Eidman, Vernon R.

Abstract

This article presents current investment and operating costs of ethanol and biodiesel plants for alternative prices of feedstock. The price of these two fuels is estimated for alternative prices of crude oil with the existing renewable fuels policy. The excise tax credit, currently $0.51 per gallon of ethanol and $1.00 per gallon of biodiesel, is a major contributor to the fuel price and profitability of these industries. The analysis demonstrates how the crude oil price, feedstock price, and excise tax credits interact to impact profitability of these industries
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Eidman, Vernon R., 2007. "Economic Parameters for Corn Ethanol and Biodiesel Production," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34879, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeasm:34879
    DOI: 10.22004/ag.econ.34879
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/34879/files/sp07ei01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.34879?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tiffany, Douglas G. & Eidman, Vernon R., 2003. "Factors Associated With Success Of Fuel Ethanol Producers," Staff Papers 14155, University of Minnesota, Department of Applied Economics.
    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. Moschini, GianCarlo & Lapan, Harvey & Kim, Hyunseok, 2016. "The Renewable Fuel Standard: Market and Welfare Effects of Alternative Policy Scenarios," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235721, Agricultural and Applied Economics Association.
    2. David Ubilava, 2012. "Modeling Nonlinearities in the U.S. Soybean‐to‐Corn Price Ratio: A Smooth Transition Autoregression Approach," Agribusiness, John Wiley & Sons, Ltd., vol. 28(1), pages 29-41, January.
    3. Drabik, Dusan, 2011. "The Theory of Biofuel Policy and Food Grain Prices," Working Papers 126615, Cornell University, Department of Applied Economics and Management.
    4. Sparks, G.D. & Ortmann, G.F., 2011. "Global biofuel policies: A review," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 50(2), September.
    5. Zhu, Yichen & Ghoshray, Atanu, 2021. "Climate Anomalies and Its Impact on U.S. Corn and Soybean Prices," 2021 Conference, August 17-31, 2021, Virtual 315271, International Association of Agricultural Economists.
    6. Gardner Bruce, 2007. "Fuel Ethanol Subsidies and Farm Price Support," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-22, December.
    7. Lapan, Harvey & Moschini, GianCarlo, 2012. "Second-best biofuel policies and the welfare effects of quantity mandates and subsidies," Journal of Environmental Economics and Management, Elsevier, vol. 63(2), pages 224-241.
    8. Funk, Samuel M. & Zook, James E. & Featherstone, Allen M., 2008. "Chicago Board of Trade Ethanol Contract Efficiency," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6811, Southern Agricultural Economics Association.
    9. repec:ags:ijag24:347272 is not listed on IDEAS
    10. Miller, Jesse & Clark, Christopher M. & Peterson, Steve & Newes, Emily, 2024. "Estimated attribution of the RFS program on soybean biodiesel in the U.S. using the bioenergy scenario model," Energy Policy, Elsevier, vol. 192(C).
    11. Drabik, Dušan & de Gorter, Harry, 2013. "Emissions from Indirect Land Use Change: Do they Matter with Fuel Market Leakages?," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 16(2), pages 1-13, September.
    12. repec:ags:ijag24:347278 is not listed on IDEAS
    13. Cai, Xiaowei & Stiegert, Kyle W., 2014. "Market Analysis of Ethanol Capacity," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(1), pages 1-12, February.
    14. Henderson, Jason R. & Gloy, Brent A., 2008. "The Impact of Ethanol Plants on Cropland Values in the Great Plains," Working Papers 51080, Cornell University, Department of Applied Economics and Management.
    15. Henderson, Jason R. & Gloy, Brent A., 2008. "The Impact of Ethanol Plants on Land Values in the Great Plains," 2007 Agricultural and Rural Finance Markets in Transition, October 4-5, 2007, St. Louis, Missouri 48148, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    16. Dahlgran, Roger A., 2009. "Inventory and Transformation Hedging Effectiveness in Corn Crushing," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), pages 1-18, April.
    17. Drabik, Dušan & Ciaian, Pavel & Pokrivčák, Ján, 2016. "The effect of ethanol policies on the vertical price transmission in corn and food markets," Energy Economics, Elsevier, vol. 55(C), pages 189-199.
    18. Sparks, G.D. & Ortmann, G.F. & Lagrange, L., 2011. "An Economic Evaluation of Soybean-Based Biodiesel Production on Commercial Farms in Kwazulu-Natal, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 50(3), September.
    19. repec:lic:licosd:35114 is not listed on IDEAS
    20. Brent A. Gloy & Jason Henderson, 2008. "The impact of ethanol plants on cropland values in the Great Plains," Regional Research Working Paper RRWP 08-01, Federal Reserve Bank of Kansas City.
    21. Spaulding, Aslihan D. & Schmidgall, Timothy J., 2008. "Examination of Ethanol Marketing and Input Procurement Practices of the U.S. Ethanol Producers," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6457, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    22. Sparks, G.D. & Ortmann, Gerald F. & Lagrange, L., 2010. "An Economic Evaluation of Soybean-Based Biodiesel Production on Commercial Farms in the Soybean-Producing Regions of KwaZulu-Natal: Some Preliminary Results," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95980, African Association of Agricultural Economists (AAAE).

    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. Amigun, Bamikole & Petrie, Daniel & Görgens, Johann, 2011. "Economic risk assessment of advanced process technologies for bioethanol production in South Africa: Monte Carlo analysis," Renewable Energy, Elsevier, vol. 36(11), pages 3178-3186.
    2. Outlaw, Joe L. & Burnquist, Heloisa Lee & Ribera, Luis A., 2007. "Bioenergy--Agricultural Issues and Outlook," 2007 NAAMIC Workshop IV: Contemporary Drivers of Integration 163901, North American Agrifood Market Integration Consortium (NAAMIC).
    3. Schlosser, Janet A. & Leatherman, John C. & Peterson, Jeffrey M., 2008. "Are Biofuels Revitalizing Rural Economies? Projected Versus Actual Labor Market Impacts in the Great Plains," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6123, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Tiffany, Douglas G. & Jordan, Brendan & Dietrich, Erin & Vargo-Daggett, Becca, 2006. "Energy and Chemicals from Native Grasses: Production, Transportation and Processing Technologies Considered in the Northern Great Plains," Staff Papers 13838, University of Minnesota, Department of Applied Economics.
    5. Miranowski, John A, 2007. "Biofuel Incentives and the Energy Title of the 2007 Farm Bill," ISU General Staff Papers 200705170700001565, Iowa State University, Department of Economics.
    6. Boukis, Ioannis & Vassilakos, Nikos & Kontopoulos, Georgios & Karellas, Sotirios, 2009. "Policy plan for the use of biomass and biofuels in Greece: Part II: Logistics and economic investigation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 703-720, May.
    7. Bureau for Food and Agricultural Policy, 2005. "Bio-ethanol production in South Africa: An objective Analysis," BFAP Reports 279778, Bureau for Food and Agricultural Policy (BFAP), BFAP Reports.
    8. Winchester, Niven & Reilly, John M., 2015. "The feasibility, costs, and environmental implications of large-scale biomass energy," Energy Economics, Elsevier, vol. 51(C), pages 188-203.
    9. Andrian, Leandro Gaston, 2010. "Essays on energy economics: Microeconomic and macroeconomic dimensions," ISU General Staff Papers 201001010800002725, Iowa State University, Department of Economics.
    10. Doering, Otto C., III, 2004. "U.S. Ethanol Policy: Is It the Best Energy Alternative?," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 5, pages 1-8, December.
    11. Carlberg, Jared G. & Ward, Clement E. & Holcomb, Rodney B., 2006. "Success Factors for New Generation Cooperatives," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 9(1), pages 1-20.
    12. Farzad Taheripour & Wallace E. Tyner, 2010. "Biofuels, Policy Options, and Their Implications: Analyses Using Partial and General Equilibrium Approaches," Natural Resource Management and Policy, in: Madhu Khanna & Jürgen Scheffran & David Zilberman (ed.), Handbook of Bioenergy Economics and Policy, chapter 0, pages 365-383, Springer.
    13. Richardson, James W. & Lemmer, Wessel J. & Outlaw, Joe L., 2007. "Bio-ethanol Production from Wheat in the Winter Rainfall Region of South Africa: A Quantitative Risk Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(2), pages 1-24.
    14. Ali, Tariq & Huang, Jikun & Yang, Jun, 2013. "Impact assessment of global and national biofuels developments on agriculture in Pakistan," Applied Energy, Elsevier, vol. 104(C), pages 466-474.
    15. Finco, Adele & Padella, Monica & Spinozzi, Romina & Benedetti, Andrea, 2010. "Biofuel And Policy Alternatives: A Farm Level Analysis," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188088, International Consortium on Applied Bioeconomy Research (ICABR).
    16. Rhys T. Dale & Wallce E. Tyner, 2006. "Economic and Technical Analysis of Ethanol Dry Milling: MOdel User's Manual," Working Papers 06-05, Purdue University, College of Agriculture, Department of Agricultural Economics.
    17. Rhys T. Dale & Wallace E. Tyner, 2006. "Economic And Technical Analysis Of Ethanol Dry Milling: Model Description," Working Papers 06-04, Purdue University, College of Agriculture, Department of Agricultural Economics.
    18. Viju, Crina & Kerr, William A., 2013. "Taking an option on the future: Subsidizing biofuels for energy security or reducing global warming," Energy Policy, Elsevier, vol. 56(C), pages 543-548.
    19. Kebede, Ellene & Duffy, Patricia A. & Zabawa, Robert, 2006. "The Effect of Ethanol Production on Agricultural Production in the State of Alabama," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35415, Southern Agricultural Economics Association.
    20. Eidman, Vernon R., 2005. "Agriculture's Role in Energy Production: Current Levels and Future Prospects," Energy from Agriculture: New Technologies, Innovative Programs and Success Stories, December 14-15, 2005, St. Louis, Missouri 7628, Farm Foundation.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    JEL classification:

    • 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
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

    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:ags:saeasm:34879. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.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.