Land-Use, Crop Choice, and Proximity to Ethanol Plants
Junpyo Park (),
John Anderson () and
Eric Thompson ()
Additional contact information
Junpyo Park: College of Humanities and Social Sciences, Faculty of Economics, University of Northern Colorado, Greeley, CO 80639, USA
Eric Thompson: College of Business, Faculty of Economics, University of Nebraska-Lincoln, Lincoln, NE 68588, USA
Land, 2019, vol. 8, issue 8, 1-14
This paper examines how proximity to an ethanol plant influences land-use and crop choice among producers. We estimated a Tobit model of crop choice within parcels located in Central Nebraska in a 2014 sample period in order to analyze changes in land-use and crop choice. We employed Geographic Information System (GIS) databases to access relevant data on crop choice and other land uses in the study area parcels, in addition to detailed information on the location and capacity of irrigation wells. We utilized an instrumental variable approach to account for the endogeneity of crop choice with ethanol refinery locations in the study area. Our regional model also took into account specific characteristics of the local processing markets for grains, including animal food manufacturers and livestock as well as ethanol plants. Our estimates revealed that ethanol plants alter land-use in several ways. We found that proximity to an ethanol plant increases the share of land allocated to corn cultivation up to a distance of 30 miles and that the portion of land parcels allocated to corn production falls with distance from an ethanol plant in a non-linear pattern. We also find that land allocation to grassland and pasture rises with distance from ethanol plants.
Keywords: land-use; crop choice; ethanol plants; production clusters (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gam:jlands:v:8:y:2019:i:8:p:118-:d:252998
Access Statistics for this article
Land is currently edited by Ms. Hannah Tian
More articles in Land from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().