Drought, ethanol, and livestock

Na Hao, Gregory Colson, Byeongchan Seong, Cheolwoo Park and Michael Wetzstein

Energy Economics, 2015, vol. 49, issue C, 301-307

Abstract: The 2012 drought in the U.S. Midwest resulted in volatile crop prices. With field crops constituting a major input in livestock production, livestock producers sought a waiver to Renewable Fuel Standard biofuel mandates. They believed such a waiver would mitigate crop-price volatility; given crops are major inputs in biofuel production. The U.S. Environmental Protection Agency (EPA) denied the waiver under the belief that the waiver would have minimal if any impact on mitigating price volatility. Employing a VECM, the objective is to investigate if it was prudent for the EPA to reject the waiver. Results generally support EPA's conclusion that the waiver relaxing the biofuel mandate would have minimal impact.

Keywords: Biofuel mandates; Corn; Drought; Ethanol; Livestock; Soybeans (search for similar items in EconPapers)
JEL-codes: Q10 Q11 Q16 Q40 Q41 Q48 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988315000456
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Drought, Biofuel, and Livestock (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:49:y:2015:i:c:p:301-307

DOI: 10.1016/j.eneco.2015.02.008

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().