(2006) An Analysis of the Link between Ethanol, Energy, and Crop Markets, November 2006. Iowa State University
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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.
| Item Type: | Departmental Report |
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| Keywords: | agricultural markets, energy, ethanol, renewable fuels |
| Subjects: | Agriculture and food production Natural resources and environment > Energy resources |
| ID Code: | 4332 |
| Deposited By: | Margaret Barr |
| Deposited On: | 23 Jan 2007 |
| Last Modified: | 23 Jan 2007 |
| URI: | https://publications.iowa.gov/id/eprint/4332 |