Feed and livestock model of the United States with an application to the possible effects on US agriculture of large-scale corn alcohol production
Models of the three major crops, corn ethanol production and the livestock economy are specfied and estimated. The models are simulated under various scenarios to determine the possible short-term and long-term effects on the US agriculture economy in the event the US engages in large-scale production of fermentation ethanol from corn. Such production would be the result of price incentives caused by a rapid increase in the price of crude oil. The ethanol would be used as octane booster in premium unleaded gasoline. In this analysis the author found that limiting the use of alcohol as blender to boost octane ratings of premium unleaded gasoline would have only minor effects on the crop and livestock economies of the US agricultural sector. He does feel, however, that expansion of its use into the broader gasohol market might result in a much larger impact on both the crops and livestock sectors of the US agricultural economy. He also analyzed the effects on the byproduct feed markets of the alcohol production and found that byproduct prices would probably remain sufficiently strong to make such production economically feasible.
- OSTI ID:
- 6693546
- Country of Publication:
- United States
- Language:
- English
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AGRICULTURE
ALCOHOL FUELS
CEREALS
CROPS
DOMESTIC ANIMALS
ECONOMIC IMPACT
ETHANOL FUELS
FUELS
GASOHOL
GRAMINEAE
GRASS
INDUSTRY
LIQUID FUELS
MAIZE
NORTH AMERICA
PLANTS
SYNTHETIC FUELS
USA