SPATIAL COMPETITION AND ETHANOL PLANT LOCATION DECISIONS

Camilo Sarmiento and William Wilson

No 9236, Agribusiness & Applied Economics Report from North Dakota State University, Department of Agribusiness and Applied Economics

Abstract: Ethanol is one of the fastest growing industries in the U.S. agricultural sector. This study estimates factors that impact location decisions by new ethanol plants using logistic regression analysis and spatial correlation techniques. The results indicate that location decisions are impacted by the agricultural characteristics of a county, competition, and state-level subsidies. Spatial competition is particularly important. Existence of a competing ethanol plant reduces the likelihood of making a positive location decision and this impact decreases with distance. Finally, state-level subsidies were significant and a very important variable impacting ethanol location decisions.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 18
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://ageconsearch.umn.edu/record/9236/files/aer604.pdf (application/pdf)

Related works:
Working Paper: SPATIAL COMPETITION AND ETHANOL PLANT LOCATION DECISIONS (2008)
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:ags:nddaae:9236

DOI: 10.22004/ag.econ.9236

Access Statistics for this paper

More papers in Agribusiness & Applied Economics Report from North Dakota State University, Department of Agribusiness and Applied Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().