Economics at your fingertips  

The Impacts of Biofuel Policies on Spatial and Vertical Price Relationships in the US Fertilizer Industry

Anton Bekkerman, Thomas Gumbley and Gary W. Brester

Applied Economic Perspectives and Policy, 2021, vol. 43, issue 2, 802-822

Abstract: Biofuel policies and concomitant market forces in the mid‐2000s systemically altered US corn markets. Because corn production requires large nitrogen fertilizer inputs, those policies may have also impacted US fertilizer markets. We model fertilizer price relationships across US regions and leverage the natural experiment of biofuel policy intervention to show the secondary impacts on fertilizer markets. Long‐run fertilizer price adjustments became faster and short‐run price dynamics became more responsive to corn markets and less affected by natural gas prices. Additionally, regions where corn production significantly increased after the policies had a 10–20% increase in influencing the fertilizer price discovery process.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

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:

Access Statistics for this article

More articles in Applied Economic Perspectives and Policy from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2021-05-29
Handle: RePEc:wly:apecpp:v:43:y:2021:i:2:p:802-822