Impact of alcohol fuel production on agricultural markets
Production of alcohol from biomass feedstocks, such as corn, was given Federal and State support which resulted in alcohol production rising from 20 million gallons in 1979 to 430 million gallons in 1984. This study estimates the impacts of alcohol production from corn on selected agricultural markets. The tool of analysis was a three region (United States, the European Community and the rest of the world) econometric model of the markets for corn, soybeans, soybean meal, soybean oil, wheat and corn byproduct feeds. Three alternative growth paths for alcohol production (totalling 1.1, 2.0, and 3.0 billion gallons) were analyzed with the model in the context of three different trade environments. The results of this analysis indicate that alcohol production of 1.1 billion gallons by 1980 would have caused moderate adjustments to commodity markets while 3.0 billion gallons would have caused major adjustments. Corn prices rose sharply with increased alcohol production as did wheat prices but to a somewhat lesser extent. The substitution of corn for soybeans on the supply side was not sufficient to offset the demand depressing effects of corn byproduct feeds on soybean meal which translated into slightly lower soybean prices. A quota limiting imports of corn gluten feed into the EC to three million tons annually would cause reductions in export earnings for corn millers.
- Research Organization:
- Purdue Univ., Lafayette, IN (USA)
- OSTI ID:
- 7038924
- Resource Relation:
- Other Information: Thesis (Ph. D.)
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
AGRICULTURE
MARKET
ALCOHOL FUELS
ECONOMIC IMPACT
USA
MATHEMATICAL MODELS
PRODUCTION
FUELS
INDUSTRY
NORTH AMERICA
SYNTHETIC FUELS
090200* - Alcohol Fuels- (-1989)
295000 - Energy Planning & Policy- Hydrogen & Synthetic Fuels
290200 - Energy Planning & Policy- Economics & Sociology