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Full-Text Articles in Agricultural and Resource Economics
Structural Shifts In Agricultural Markets Caused By Government Mandates: Ethanol And The Renewable Fuels Standard, John Olson
John Olson
For many decades, demand for agricultural commodities has remained stagnant and its growth has been limited. In contrast, agricultural production continues to become ever more efficient by increasing output for stable or decreased inputs. Long-run profits have historically been near zero due to an ongoing relative equilibrium. But recent U.S. energy policy has changed to include a Renewable Fuels Standard (RFS), the goal of which is to boost domestic energy independence in an environmentally sound way. Most of the RFS in the near-term relies on the production of 15 billion gallons of ethanol made from corn. This has the effect …
Powering America: The Impact Of Ethanol Production In The Corn Belt States, Luisa Blanco, Michelle Isenhouer
Powering America: The Impact Of Ethanol Production In The Corn Belt States, Luisa Blanco, Michelle Isenhouer
Luisa Blanco
This paper investigates the impact of ethanol production in the Corn Belt states (Iowa, Indiana, Illinois, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin). Employing data at the county level, from 2005 and 2006, we investigate the effect of ethanol production on employment and wages. Our empirical results show that ethanol production has a positive significant effect on employment and wages, but this effect is of insignificant magnitude. We also find that counties with high and medium levels of ethanol production capacity show higher levels of employment and wages than those counties that do not produce ethanol. …
Grain Ethanol - Why Consider Food For Fuel?, Richard Perrin
Grain Ethanol - Why Consider Food For Fuel?, Richard Perrin
Richard K Perrin
Current U.S. energy policy encourages additional ethanol production through a combination of subsidies and mandates. Grain ethanol production converts a potential food into fuel. Concerns have been expressed that this drives up the price of food, and could contributed to world hunger problems. Other objections to grain ethanol have been raised: it might not reduce greenhouse gases much if at all; intensified cropping could deteriorate environmental resources, and it might increase smog in cities. Why, then, do proponents favor increased grain ethanol production? It is possible that it will educe greenhouse gas emissions; it can reduce petroleum imports, it can …