The popularity of public investment in local bio-fuels production as a rural development initiative is growing. An important consideration in determining the level of public support for a plant's development, however, is accurately measuring public externalities resulting from plant activity....

We examine the community characteristics that lead to locating a biodiesel plant. Utilizing data that includes all biodiesel plants in the United States, we employ spatial econometrics to evaluate those characteristics that lead to a plant siting. While public policies associated with biofuels...