Cui, Jingbo; Lapan, Harvey; Moschini, GianCarlo; … - In: American Journal of Agricultural Economics 93 (2011) 5, pp. 1235-1256
An open-economy equilibrium model is derived to investigate the effects of energy policy on the U.S. economy, with emphasis on corn-based ethanol. A second best policy of a fuel tax and ethanol subsidy is found to approximate fairly closely the welfare gains associated with the first best policy...