A Welfare Analysis of the U.S. Ethanol Subsidy
Based on an analytical model of multiple interconnected markets including corn, ethanol, gasoline, and transportation fuel, this study estimates the welfare changes for consumers and producers resulting from ethanol production and related support polices in 2007. The welfare estimation takes into account the fact that the ethanol program was implemented in a market that had already been distorted by other programs. The results suggest a total social cost of about $0.89 billion for given market parameters. We validate the model's underlying assumption and test for the results' sensitivity to assumed parameters. Copyright 2009 Agricultural and Applied Economics Association
Year of publication: |
2009
|
---|---|
Authors: | Du, Xiaodong ; Hayes, Dermot J. ; Mallory, Mindy L. |
Published in: |
Review of Agricultural Economics. - Agricultural and Applied Economics Association - AAEA, ISSN 2040-5790. - Vol. 31.2009, 4, p. 669-676
|
Publisher: |
Agricultural and Applied Economics Association - AAEA |
Saved in:
freely available
Saved in favorites
Similar items by person
-
A welfare analysis of the US ethanol subsidy
Du, Xiaodong, (2009)
-
A Welfare Analysis of the U.S. Ethanol Subsidy
Du, Xiaodong, (2009)
-
How market efficiency and the theory of storage link corn and ethanol markets
Mallory, Mindy L., (2010)
- More ...