EconPapers    
Economics at your fingertips  
 

Economic impact of ethanol promotion in Mexico: A general equilibrium analysis

Alejandra Elizondo and Roy Boyd

Energy Policy, 2017, vol. 101, issue C, 293-301

Abstract: In this paper we analyze the economic impact of a decision to produce ethanol in Mexico, comparing the effect of a subsidy to initiate ethanol production with that of alternative public policies. Public support of biofuels has been a public policy goal since 2008, and the promotion of ethanol remains an active part of the government agenda. The evidence used to encourage or alter the policy is (by necessity) chiefly based on international experience. In this study we use a computable general equilibrium model (CGE) to estimate the impact of ethanol production on the Mexican economy. Using cost data from Brazil we introduce ethanol into a Mexican social accounting matrix, and insert a latent sector into the model to analyze ethanol promotion. Our results show that subsidies to ethanol would increase agriculture production but at the expense of aggregate welfare. By contrast, alternative "clean energy" policies appear to advance economic growth to a greater extent.

Keywords: Biofuels; Environmental policy; Ethanol promotion; Computable general equilibrium (CGE); Economic policy; Land use change (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421516306115
Full text for ScienceDirect subscribers only

Related works:
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:enepol:v:101:y:2017:i:c:p:293-301

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2018-02-24
Handle: RePEc:eee:enepol:v:101:y:2017:i:c:p:293-301