This paper analyzes the impact of an ethanol import tariff in conjunction with a consumption mandate and tax credit. A … tax credit alone acts as a subsidy to ethanol producers, equally benefiting exporters like Brazil. If an import tariff is … imposed to offset the tax credit, world prices of ethanol decline by less than the tariff (unless oil prices are unaffected …

A real option analysis of dry-grind corn ethanol plants compared to a standard net present value analysis (NPV) shows … large plant, the gross margin of ethanol price over the corn price for a gallon of ethanol using NPV shows that entry will … reactivate if margins rebounded to $0.66. Growth in the variability of ethanol margins will delay new plant investments, as well …

Corn ethanol plants consume large amounts of corn and their location has the potential to alter local crop prices and … surrounding agricultural land values. The relationship between ethanol plant location and agricultural land prices is examined … basis changes associated with ethanol plant location. As a result, the land markets appear to be rationally adjusting to the …