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Economic Parameters for Corn Ethanol and Biodiesel Production

Vernon Eidman

Journal of Agricultural and Applied Economics, 2007, vol. 39, issue 2, 345-356

Abstract: This article presents current investment and operating costs of ethanol and biodiesel plants for alternative prices of feedstock. The price of these two fuels is estimated for alternative prices of crude oil with the existing renewable fuels policy. The excise tax credit, currently $0.51 per gallon of ethanol and $1.00 per gallon of biodiesel, is a major contributor to the fuel price and profitability of these industries. The analysis demonstrates how the crude oil price, feedstock price, and excise tax credits interact to impact profitability of these industries.

Date: 2007
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