Ethanolomics: The Think-About's of the Mexican Ethanol Project

Ricardo Cantú ()

No 20073, Working Papers from Escuela de Graduados en Administración Pública y Políticas Públicas, Campus Monterrey

Abstract: The Mexican Ethanol Project has the potential of power up rural economy, improve the environment quality, and substitute the non-renewable fossil energy resources. But the risk of not achieving these is latent: the market distorts that it could unleash can change the expected outcomes. Public policies, such as No Deforestation, Investments in Agricultural Productivity, and Ethanol Manufacture in situ, could help orientate the private incentives to increase social welfare. In a big proportion, PEMEX and the Mexican Federal Government would be directly, or indirectly, affected by the domestic ethanol production, opening a door for them to participate in it and avoid damage on their interests. But there's still a question to answer: how long it would take before these benefits could be felt?

Keywords: ethanol; rural development; Mexico; public policies; oil crisis (search for similar items in EconPapers)
JEL-codes: H30 L32 L33 Q12 Q13 Q18 Q20 Q23 Q27 Q29 R11 R13 R38 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2007-02, Revised 2007-08
New Economics Papers: this item is included in nep-agr, nep-ene and nep-env
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