We determine how the U.S. ethanol tax credit and import tariff affect the corn-ethanol-gasoline markets and how farm subsidies interact with these policies. We show how the ethanol tax credit and import tariff each uniquely affect the ethanol and gasoline prices. The ethanol import tariff alone...

A general theory is developed to analyze the efficiency and income distribution effects of a biofuel consumer tax credit and the interaction effects with a price contingent farm subsidy. Using the U.S. ethanol market as a stylized example, ethanol prices rise above the gasoline price by the...

Although food quality and food safety issues seem to dominate discussion and research in Europe, price inflation and economic recession may pose questions over food abundance over the coming years. For the first time since the early seventies, market stability for a number of commodities is...

This study analyses the National Programme for Production and Use of Biodiesel launched by the Brazil Federal Government in 2005 as a public policy to generate sustainable employment and income within the context of development of new alternative sources of energy. It also verifies the impact of...

Price induced increases in land rents trigger an increasing incentive for rent-seeking behavior. To analyse distributional and welfare effects of increasing land rents in developing countries, we develop a game theoretic model where a large and heterogeneous group of farmers competes with a...