Analysis of the Link between Ethanol, Energy, and Crop Markets, An

Simla Tokgoz and Amani Elobeid

Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) from Center for Agricultural and Rural Development (CARD) at Iowa State University

Abstract: This study analyzes the impact of price shocks in three input and output markets critical to ethanol: gasoline, corn, and sugar. We investigate the impact of these shocks on ethanol and related agricultural markets in the United States and Brazil. We find that the composition of a country's vehicle fleet determines the direction of the response of ethanol consumption to changes in the gasoline price. We also find that a change in feedstock costs affects the profitability of ethanol producers and the domestic ethanol price. In Brazil, where two commodities compete for sugarcane, changes in the sugar market affect the competing ethanol market.

Keywords: agricultural markets; energy; ethanol; renewable fuels. (search for similar items in EconPapers)
JEL-codes: Q11 Q18 Q42 (search for similar items in EconPapers)
Date: 2006-11
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Citations: View citations in EconPapers (17)

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Working Paper: Analysis of the Link between Ethanol, Energy, and Crop Markets, An (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ias:fpaper:06-wp435

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