Washington Biofuel Feedstock Supply under Price Uncertainty

Qiujie Zheng and C. Shumway

No 42304, 2008 Annual Meeting, June 23-24, 2008, Big Sky, Montana from Western Agricultural Economics Association

Abstract: Biofuels, as alternative transportation fuels, are now being used globally. Taking advantage of in-state feedstock supply is an efficient way to stimulate in-state biofuel industries and the local economy. This paper uses the mean-variance model of utility maximization to estimate supply equations for major biofuel feedstock crops in Washington. We consider price risk, examine the comparative statics results of the model, and use the results to draw important decision-making implications for Washington farmers who are considering production of biofuel feedstocks. Of three potential feedstock crops, only one shows immediate promise in Washington.

Keywords: Crop Production/Industries; Production Economics; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 21
Date: 2008
New Economics Papers: this item is included in nep-agr, nep-ene and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:ags:waeabi:42304

DOI: 10.22004/ag.econ.42304

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