In this study stylized gasoline blender’s optimal hedging strategy in the presence of ethanol mandates is analyzed. In …

and ethanol policies on farmland values and rental rates. Using weighted ordinary least squares and two stage least … squares, we find that government payments, urban pressure and the proximity of the farm to an ethanol facility have a positive …

among these six variables: rice, wheat, corn, coal, crude oil and ethanol. Our major contribution to the existing literature … energy prices. We also find that ethanol price is neither in the long-run equilibrium nor responding to deviation from long …-run equilibrium. It supports that under the current policy, Chinese government has done well to prevent the ethanol price driving up …