BIOETHANOL PRODUCTION IN MEXICO: SOCIO- ECONOMIC IMPLICATIONS, PRODUCCION DE BIOETANOL EN MEXICO: IMPLICACIONES SOCIO-ECONOMICAS

Alberto Perez Fernandez and Jose Apolonio Venegas Venegas

Revista Internacional Administracion & Finanzas, 2017, vol. 10, issue 1, 13-24

Abstract: Energy reforms in Mexico and the search for new sources of environmentally friendly energy have generated changes in the Mexican economy. One potential solution for decreasing the emission of greenhouse gases is the use of bioethanol produced from corn, sorghum, barley or wheat. These crops were studied to estimate the elasticities of the Marshallian and Hicksian demands through the application of the Almost Ideal Demand System with seemingly unrelated regressions and the use of the Stone Index. Results indicate that corn is the only superior good. Its demand increases despite price increments. The apparent relationship with the use of corn in the United States for the production of ethanol has generated speculation in the international market and has affected the price of tortilla and corn, decreasing the capability of the Mexican population for purchasing corn derived products

Keywords: Demand; Elasticity; Stone Index; Biofuels (search for similar items in EconPapers)
JEL-codes: C13 O10 O13 Q00 Q11 (search for similar items in EconPapers)
Date: 2017
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