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on Energy Economics |
| By: | Povh, Martin; Fleten, Stein-Erik |
| Abstract: | In contrast to forwards and futures on storable commodities, prices of long-term electricity forwards exhibit a dynamics different to that of short-term and mid-term prices. We model long-term electricity forward prices through demand and supply for electricity, adjusted with a risk premium. Long-term prices of electricity, oil, coal, natural gas, emission allowance, imported electricity and aluminum are modeled with a vector autoregressive model. To estimate the model we use weekly prices of far-maturity forwards relevant for Nordic electricity market. Electricity prices experienced few substantial shocks during the period analyzed, however, we found no evidence of a structural break. Cointegration analysis indicates two stationary cointegrating vectors. Nord Pool price is found significant in the short- and the long-run model, while the gas price is insignificant in both. Other variables are significant only in the long-run model. The model shows some influence of the risk premium, however not on the long-term electricity forwards at Nord Pool. |
| Keywords: | Electricity prices; long-term forward prices; VAR modeling; cointegration |
| JEL: | G13 Q4 C01 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13162&r=ene |
| By: | Perrot, Rhadika (UNU-MERIT.) |
| Abstract: | This paper looks at the role of firms in the transformation of fossil fuel based energy systems towards cleaner and greener energy systems. Firms are playing an important role in determining the speed and direction of technical change towards such energy systems. But systemic constraints and negative externalities tend to make such transformations constraint and difficult. To be able to understand how firms overcome these systemic constraints and bring about positive externalities it would be important to observe the strategic role played by firms. Firms are removing technological and economic constraints by engaging in strategic alliances with other firms and research organizations. Both small and large firms have positioned themselves strategically in the green energy market either through basic innovations or through innovations brought about by joint technological partnerships. |
| Keywords: | Firm Strategy, Sustainable Energy, Renewable Energy, System Transition |
| JEL: | A10 M21 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2009003&r=ene |
| By: | Patrizio Pagano (Bank of Italy, via Nazionale 91, I - 00184 Rome, Italy.); Massimiliano Pisani (Bank of Italy, via Nazionale 91, I - 00184 Rome, Italy.) |
| Abstract: | This paper documents the existence of a significant forecast error on crude oil futures. We interpret it as a risk premium, which, in part, could have been explained by means of a real-time US business cycle indicator, such as the degree of capacity utilization in manufacturing. This result is robust to the specification of the estimating equation and to the considered business cycle indicator. An out-of-the-sample prediction exercise reveals that futures adjusted to take into account this time-varying component produce significantly better forecasts than those of unadjusted futures, of futures adjusted for the average forecast error and of the random walk, particularly at horizons of more than 6 months. JEL Classification: E37, E44, G13, Q4. |
| Keywords: | Oil, Forecasting, Futures. |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20090999&r=ene |
| By: | Kline, Patrick (Yale U) |
| Abstract: | This paper examines the response of employment and wages in the US oil and gas field services industry to changes in the price of crude petroleum using a time series of quarterly data spanning the period 1972-2002. I find that labor quickly reallocates across sectors in response to price shocks but that substantial wage premia are necessary to induce such reallocation. The timing of these premia is at odds with the predictions of standard models-wage premia emerge quite slowly, peaking only as labor adjustment ends and then slowly dissipating. After considering alternative explanations, I argue that a dynamic market clearing model with sluggish movements in industry wide labor demand is capable of rationalizing these findings. I proceed to structurally estimate the parameters of the model by minimum distance and find that simulated impulse responses match key features of the estimated dynamics. I also provide auxiliary evidence corroborating the implied dynamics of some important unobserved variables. I conclude with a discussion of the strengths and weaknesses of the model and implications for future research. |
| JEL: | J20 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:yaleco:43&r=ene |
| By: | ORIETTA FAVARO; MARIA SUSANA PALACIOS |
| Abstract: | RESUMEN El objetivo del trabajo es acercar algunas consideraciones sobre la situación actual del ENIM (Ente Autárquico Intermunicipal El Mangrullo) , un organismo que debía promover la reconversión de la economía de dos localidades petroleras, Cutral Co y Plaza Huincul, en Neuquén (Argentina) a partir de la explotación del yacimiento gasífero denominado “El Mangrullo”, transferido a los municipios de esas localidades por el gobierno neuquino –a cargo del Movimiento Popular Neuquino (MPN)-, como consecuencia de las puebladas de 1996-1997. Esta medida representó un intento de dar respuestas al problema de desempleo y la crisis de los años 1990 en esas áreas petroleras, frente a la privatización de YPF y la revocatoria de acuerdos firmados por el anterior gobierno – del mismo signo político- en el marco de la lucha facciosa en el interior del partido provincial. ABSTRAC The aim of the present work is to approach some considerations about the current situation of ENIM (Ente Autarquico Intermunicipal El Mangrullo), an organization that should promote the economy restructuring of two oil towns, viz. Cutral Co and Plaza Huincul, both located in Neuquen, Argentina. The beforementioned promotion was done through the exploitation of the oilfield known as ¨El Mangrullo¨ then transferred to the townhalls of these two towns by Neuquen goverment - in charge of Movimiento Popular Neuquino (MPN) - as a consequence of 1996 - 1997 mobs. This measure represented one more attempt of providing answers to the unemployment issue and the 1990 crisis in these oil areas, in opposition to YPF privatization and the revocation of agreements signed by the previous goverment - of the same political line - in the frame of the factious fight in the local party internal. |
| Date: | 2008–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:col:000097:005236&r=ene |
| By: | Atiq-ur-Rehman, Atiq-ur-Rehman; Anis, Hafsa |
| Abstract: | According to official estimates, territory of Azad Jammu & Kashmir has a potential to generate about 4600 MW of hydroelectricity, the cheapest source of energy. Total deficit in energy Pakistan is facing these days is about 5000 MW. So, only AJK can fulfill more than 90% of deficit of now demanded energy for entire country. Beside this direct and explicit advantage of hydropower projects to power sector, these projects may be extremely useful in improving many economic and social indicators at local and national level. Many socioeconomic indicators reveal that Azad Kashmir is there is huge gap in development level of AJK and National level. Development of power sector is extremely important to fill this gap. In this paper, we analyze effect of possible implementation of these projects on various economic and social sectors at local and national level. We discuss the obstacles in implementation of projects and recommendations are given at the end. |
| Keywords: | Economic Growth; Hydropower Project |
| JEL: | D20 D00 |
| Date: | 2008–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13070&r=ene |
| By: | Runge, C. Ford |
| Abstract: | President-elect Obama has proposed major spending to revitalize America’s infrastructure. But how? First, where we have gone and where we are is the result of an historical co-evolution of public transportation infrastructure and private economic investment. Where we need to go is toward more efficient modes of transport that economize on fuel and energy use and reduce greenhouse gas (GHG) emissions. But how we get there is bounded to a significant degree by this past and present: what economists call “path-dependency.†Second, the historical evolution of public infrastructure has been important to the U.S. economy not simply because it supplemented private sector investments, but because the public investments raised private rates of return over time. National highways and bridges have made possible a shift in the carrying costs of inventory, one consequence of which has been to improve efficiencies in the delivery and availability of consumer goods. As more efficiencies in the use of scarce energy are sought economy-wide, business will be forced to find concentrations of activity along the nodes of supply chains that are more efficient. These adjustments can be facilitated by public infrastructure investments allowing for flexibility in intermodal transport activity, which can be a key aspect of the new administration’s national energy strategy. This brief discussion is divided into three parts: (1) the economics of infrastructure and its relationship to just-in-time inventory management; (2) an example drawn from the food industry case of fresh fruits and vegetables; (3) recommendations for a public investment strategy that maximizes the opportunities for efficiencies along the supply chain, thus conserving energy. |
| Keywords: | Environmental Economics and Policy, Public Economics, |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umrfwp:46519&r=ene |
| By: | Alfredo Marvão Pereira (Department of Economics, College of William and Mary,); Rui Manuel Marvão Pereira (College of William and Mary) |
| Abstract: | The objective of this paper is to estimate the impact of carbon dioxide emissions from fossil fuel combustion activities on economic activity in Portugal in order to evaluate the economic costs of policies designed to reduce carbon dioxide emissions. We find that energy consumption has a significant impact on macroeconomic activity. In fact, a one ton of oil equivalent permanent reduction in aggregate energy consumption reduces output by €6,340 over the long term, an aggregate impact which hides a wide diversity of effects for different fuel types. More importantly, and since carbon dioxide emissions are linearly related to the amounts of fuel consumed, our results allow us to estimate the costs of reductions in carbon dioxide emissions from different energy sources. We estimate that marginal abatement costs for carbon dioxide are €45.62 per ton of carbon dioxide per year for coal, €66.52 for oil, €91.07 for gas, €191.13 for electricity and €254.23 for biomass. An important policy implication is tha t, once the overall economic costs of reducing carbon dioxide emissions are considered, fuel switching is a no-regrets environmental policy capable of reducing carbon dioxide emissions without jeopardizing economic activity and indeed with the potential for generating favorable economic outcomes. |
| Keywords: | carbon dioxide emissions, energy and the economy, environmental policy, fuelswitching vector autoregressive model |
| JEL: | C32 O13 Q43 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:evo:wpecon:05_2008&r=ene |
| By: | Lang, X.; Reiner, D.; Neuhoff, K. |
| Abstract: | The economic and policy framework for investment decisions in the power generation sector in China are investigated. Our analysis combines a review of the existing legal framework with a survey of stakeholders in industry and government. Based on interviews with over 60 stakeholders, we find a consistent picture emerges of the role of the major institutions and the decision criteria used in investment decisions for conventional thermal power technologies. In contrast, the evolving legal framework for investment in lower-carbon technologies, as reflected primarily in the renewable energy law, produces no clear consensus regarding decision criteria from either government or industry stakeholders. The overall objectives are widely acknowledged, but there is considerable disagreement amongst stakeholders over its implementation. From an investment analysis of risks versus returns, most respondents perceive advanced thermal power investments and small hydro as being more attractive than lower carbon alternatives such as wind power and solar photovoltaic (PV) power. |
| Keywords: | Investment decisions, Institutions, Power sector, Lower-carbon electricity, China. |
| JEL: | N75 L94 Q42 Q58 Q54 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:0862&r=ene |
| By: | Frankel, Jeffrey (Harvard U) |
| Abstract: | The global climate regime, as represented by the Kyoto Protocol, may be on a collision course with the global trade policy regime, as represented by the WTO (World Trade Organization). Environmentalists fear that international trade will undercut reductions in greenhouse gas emissions as dirty production migrates to non-participating countries, a phenomenon known as leakage. Meanwhile businesspeople fear the effects on their own competitiveness of the same phenomenon. These fears have now become prominent in the policy-making process. In early 2008, legislation to enact long-term targets for reduced emission of greenhouse gases included provisions for possible barriers against imports from countries perceived as non-participating--in both Washington, DC (where the bills have not yet passed) and in Brussels (where the EU Commission Directive has gone into effect). Such provisions could be interpreted as violations of the rules of the WTO, which poses the nightmare scenario of a WTO panel rejecting a major country's climate change legislation. In light of the hostile feelings that such a scenario would unleash, it would be a nightmare for the supporters of the WTO and free trade as much as for the supporters of the Kyoto Protocol and environmental protection. The issue is just the latest and largest instance of fears among many environmentalists that the WTO is an obstacle to their goals in general. The issue transcends institutions. For the critics, the WTO is a symbol of globalization, and their fears attach also to that larger phenomenon. The first part of this paper discusses the broader issue of whether environmental goals in general are threatened by free trade and the WTO. The second half of the paper focuses exclusively on the narrower question of trade aspects of nations' efforts to implement climate change policy and whether they are likely to come into conflict with the WTO. |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp08-058&r=ene |
| By: | Zhang, ZhongXiang |
| Abstract: | The climate-trade nexus has become the focus of academic debate, and has gained increasing attention as governments are taking great efforts to forge a post-2012 climate change regime to succeed the Kyoto Protocol. With concerns about their own competitiveness and growing greenhouse gas emissions in developing countries, some industrialized countries, if not all, are considering whether to impose unilateral trade measures against developing country trading partners. While it is clear that greenhouse gas emissions targets of developed countries need to be tightened further in a post-2012 climate change regime, developing country involvement is also crucial for climate change mitigation and adaptation, given that climate change is a global problem requiring a global response. This raises the issue of which approach would be most likely to stimulate developing countries to take appropriate actions in the post-2012 climate regime. Would positive or negative incentives work best, in other words, do we need carrots, sticks or both? This paper seeks to answer this question. By revisiting the six options for China that I envisioned a decade ago and examining a variety of factors, the paper first discusses how far developing country commitments can go in an immediate post-2012 climate regime. It argues that developing country commitments are most unlikely to go beyond defined policies and measures in this timeframe. The type of border adjustment provisions currently being discussed by most developed countries include more sticks than carrots for developing countries. Sticks can be incorporated, but only if they are credible and realistic and serve as a useful supplement to push developing countries to take actions or adopt policies and measures earlier than would otherwise have been the case. In order to encourage developing countries to do more to combat climate change, the paper suggests that developed countries should rather focus on carrots. |
| Keywords: | A post-2012 climate change regime; Developing country commitments; Climate-trade nexus; Climate change mitigation and adaptation; Border adjustment measures; WTO scrutiny; The Lieberman-Warner bill |
| JEL: | F18 Q48 Q56 Q54 Q58 |
| Date: | 2009–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13174&r=ene |
| By: | Peter Michaelis (University of Augsburg, Department of Economics); Thomas Ziesemer (University of Augsburg, Department of Economics) |
| Abstract: | Policy diffusion refers to the process by which a political innovation – like the introduction of a novel emission tax – disseminates over time among countries. In order to analyze this issue from an economic point of view we develop a simple two-country-model of the taxation of emissions in presence of (possible) policy diffusion. Contrary to the usual Nash setting of simultaneous decision making we consider a Stackelberg game: In the first step the domestic government introduces an emission tax td thus acting as Stackelberg-leader, in the second step the foreign government decides whether or not to introduce an emission tax tf and in the third step the firms decide on their output quantities to be sold on a third country’s market. For the case of an exogenous given probability of policy diffusion we show that the optimal domestic tax rate is c.p. the higher, the higher the probability of policy diffusion is. Moreover, we explore under which conditions first-mover behaviour by the domestic government leads to a higher tax rate compared to the Nash solution In the next step we introduce an endogenous probability of policy diffusion by combining our model with a strategic lobbying approach. As a result, the probability of policy diffusion is c.p. the smaller, the higher domestic tax rate td is. Consequently, in fixing the optimal tax rate the domestic government has to account for the foreign firm’s lobbying activities otherwise it will choose a tax rate too high. |
| Keywords: | emission taxes, first-mover behaviour, strategic environmental policy, policy diffusion |
| JEL: | F18 Q55 Q58 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:auh:wpaper:0003&r=ene |
| By: | William Shobe (University of Virginia) |
| Abstract: | On March 11, 2008 the University of Virginia Faculty Senate voted in favor of having the university take steps to make it climate neutral. This paper examines whether such a policy is feasible, and further whether pursuing a policy of climate neutrality is likely the best way to spend university resources, if the goal is to reduce the university’s carbon footprint. |
| Keywords: | carbon nuetrality; university; Virginia |
| JEL: | Q4 Q54 |
| Date: | 2008–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:vac:wpaper:wp08-04&r=ene |
| By: | Jaffe, Judson (Analysis Group); Stavins, Robert (Harvard U) |
| Abstract: | Cap-and-trade systems have emerged as the preferred national and regional instrument for reducing emissions of greenhouse gases throughout the industrialized world, and the Clean Development Mechanism--an international emission-reduction-credit system--has developed a substantial constituency, despite some concerns about its performance. Because linkage between tradable permit systems can reduce compliance costs and improve market liquidity, there is great interest in linking cap-and-trade systems to each other, as well as to the CDM and other credit systems. We examine the benefits and concerns associated with various types of linkages, and analyze the near-term and long-term role that linkage may play in a future international climate policy architecture. In particular, we evaluate linkage in three potential roles: as an independent bottom-up architecture, as a step in the evolution of a top-down architecture, and as an ongoing element of a larger climate policy agreement. We also assess how the policy elements of climate negotiations can facilitate or impede linkages. Our analysis throughout is both positive and normative. |
| JEL: | F50 Q20 Q40 Q50 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp08-053&r=ene |
| By: | Burnett, J. Wesley |
| Abstract: | Economists, ecologists, private industries and government decision-makers have long been interested in the relationships between economic growth and environmental quality. These relationships are often the subject of intense public policy debates such as the current debate surrounding global climate change issues. From an ecological or environmental perspective, the argument is often made that economic growth is bad for the environment. But, what story do the data tell? In order to address the question, a estimable model was used to analyze the effects between gross domestic product (GDP) and environmental indications for air pollution in over 100 metropolitan statistical areas in the United States from 2001-2005. The analysis is then expanded to examine the estimable relationship at the state level. The air pollution indicators include ozone, carbon monoxide, nitrogen dioxide, sulfur dioxide, and particulate matter. The results are mixed results. This study finds a statistically significant U-shaped relationship for some of the pollutants; however, the evidence is pretty weak with the exception of ground level ozone. This study does not find evidence to support the traditional EKC inverse U-shaped relationship. These results are compared and contrasted to previous studies providing insight into unresolved theoretical and empirical estimation issues and future research needs. |
| Keywords: | Air Pollution, Environmental Economics, Environmental Kuznets Curve, Fixed effects regression, Environmental Economics and Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46838&r=ene |
| By: | Fabio Cerina; Sauveur Giannoni |
| Abstract: | We build a growth model in which tourism development generates pollution while tourists are pollution adverse. We establish that long run positive growth exists only for a particular value of tourists pollution adversion. Furthermore, we show that an intensive use of facilities is associated with a lower growth rate for destinations specialized in green tourism. We also see that if the destination can choose the degree of use of facilities, tourism will generate positive growth only if tourists are not too much pollution adverse. In this case the growth rate of the economy will be a negative function of tourists' adversion to pollution so that the "greener" the kind of tourism the destination address to, the slower its growth. |
| Keywords: | Pollution, Growth, Tourism Specialization, Use of Facilities |
| JEL: | O41 Q56 L83 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:200822&r=ene |
| By: | Westhoff, Pat; Brown, Scott |
| Abstract: | This report provides preliminary analysis of impacts of selected Food, Conservation and Energy Act of 2008 (FCEA) provisions. |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:faprre:46996&r=ene |
| By: | Lazarus, William F.; Tiffany, Douglas G. |
| Abstract: | The utilization of short rotation woody crops (SRWC) to produce wood on marginal crop and pasture land could greatly enhance the production of wood for various uses in Minnesota with utilization for energy being of current interest. SRWC involves the more intensive application of inputs on more valuable land than naturally regenerated forests that currently supply the bulk of the forest products industry in Minnesota. Breeding efforts to improve productivity and disease resistance in hybrid poplar species are making the technology of SRWC competitive with agricultural uses of marginal land. This study models the economic impact of a potential shift in use of the land resource by replacing production of hay and pasture that provides feed for cow-calf beef operations in northwest and west central Minnesota with SRWC. Regional economic impacts of such a shift are measured with established input-output techniques, using the software tool IMPLAN. To complete this analysis, the magnitudes and sectors of expenditures needed to produce either beef calves or hybrid poplar plantations were compared using farm records and hybrid poplar budgets. Construction of a $175 million energy conversion facility capable of making 44 million gallons of ethanol and 7.6 million gallons of mixed alcohols by catalytic means following gasification would result in creation of 2,412 jobs during the construction period, with $158 million in value-added (mainly employee compensation and business taxes). Operation of the facility after the end of construction, if supported by 200,000 acres of hybrid poplar production, would not change the number of jobs very much compared with using the land for cow-calf operations. However, the SRWC-related jobs would likely be at higher average salary levels and business tax collections would be higher, for a value-added increase of $80 million annually. In addition to greater wood supplies to support the forest products industry, logging pressures may be reduced on public forest land as a consequence of greater deployment of technology and methods that can result in production per acre that is eight to ten-fold greater than naturally regenerated forests. |
| Keywords: | Hybrid Poplar, SRWC, IMPLAN, economics, energy, ethanol, OSB, Resource /Energy Economics and Policy, |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umaesp:46869&r=ene |
| By: | Eidman, Vernon; Petrolia, Daniel; Huang, Huajiang; Ramaswamy, Shri |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umaesp:47055&r=ene |
| By: | Thompson, Wyatt |
| Abstract: | This study examines US demand for ethanol produced in the Midwest and assesses how state policies that target ethanol demand affect biofuel and agricultural commodity markets. |
| Keywords: | Agricultural and Food Policy, Resource /Energy Economics and Policy, |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:faprre:46998&r=ene |
| By: | Mark, Tyler; Darby, Paul; Salassi, Michael |
| Keywords: | Cellulosic Ethanol, Energy Cane, Sugarcane, Farm Management, Production Economics, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46837&r=ene |
| By: | Yu, Tun-Hsiang (Edward); Hart, Chad |
| Abstract: | This paper examines the impact of biofuel expansion on grain utilization and distribution at the state and cropping district level as most of grain producers and handlers are directly influenced by the local changes. We conducted a survey to understand the utilization and flows of corn, ethanol and its co-products, such as dried distillers grains (DDG) in Iowa. Results suggest that the rapidly expanding ethanol industry has a significant impact on corn utilization in Iowa. Comparing to the earlier survey results, ethanol plants drew a considerable amount of corn away from traditional destination markets, such as feeders or export markets. A major portion of corn supplies came from in-state sources, while the sales of Iowa ethanol and DDG were dominated by out-of-state buyers. |
| Keywords: | biofuel, grain, utilization, Marketing, |
| Date: | 2009–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46847&r=ene |
| By: | Wang, Chenguang; Larson, James A.; English, Burton C.; Jensen, Kim |
| Abstract: | Switchgrass for bioenergy production will require substantial storage. This study evaluated costs of alternative baling and on-farm storage systems. Rectangular bales minimize cost if switchgrass is processed immediately after harvest. However, round bales minimize cost if switchgrass is stored under cover for 200 days before transporting to the biorefinery |
| Keywords: | switchgrass, baling, storage, transport, costs, farm, biorefinery, Agribusiness, Agricultural Finance, Environmental Economics and Policy, Farm Management, Production Economics, Resource /Energy Economics and Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46812&r=ene |
| By: | Griffith, Andrew P.; Larson, James A.; English, Burton C.; McLemore, Dan L. |
| Abstract: | This study evaluated prices and incentives for switchgrass stated in a biorefinery’s contract terms that induce switchgrass production on an east Tennessee representative farm when compared with traditional enterprises. The alternate contract terms imitated current subsidies/incentives offered as well as incentives and cost share terms not in the BCAP. |
| Keywords: | switchgrass, contract, risk aversion, net return, Farm Management, Production Economics, Resource /Energy Economics and Policy, Q12, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46811&r=ene |
| By: | Morris, Britany; Richardson, James; Frosch, Brian; Outlaw, Joe; Rooney, William |
| Abstract: | The economic feasibility of producing ethanol from sweet sorghum juice is projected using Monte Carlo simulation models to estimate the price ethanol plants will likely have to pay for sweet sorghum and the uncertain returns for ethanol plants. Ethanol plants in high yielding regions will likely generate returns on assets of 11%-12% and in low yield areas the returns on assets will be less than 10%. |
| Keywords: | Sweet Sorghum, Ethanol, Monte Carlo Simulation, Agribusiness, Agricultural Finance, Crop Production/Industries, Farm Management, Risk and Uncertainty, D20 G10 D81 C15, |
| Date: | 2009–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeana:46852&r=ene |
| By: | Fortenbery, T. Randall (U of Wisconsin); Park, Hwanil |
| Abstract: | A system of equations representing corn supply, feed demand, export demand, food, alcohol and industrial (FAI) demand, and corn price is estimated by three-stage least squares. A price dependent reduced form equation is then formed to investigate the effect of ethanol production on the national average corn price. The elasticity of corn price with respect to ethanol production is then obtained. Results suggest that ethanol production has a positive impact on the national corn price and that the demand from FAI has a greater impact on the corn price than other demand categories. Thus, significant growth in ethanol production is important in explaining corn price determination. |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:wisagr:523&r=ene |