Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

2006

Journal or Book Title

Agribusiness

Volume

22

Issue

1

First Page or Article ID Number

109

Last Page

134

DOI

10.1002/agr.20072

Abstract

An indicator of competitive position, the cost difference between ethanol import from Brazil with sugar processing and domestic production with corn in the United States under ideal conditions without tariffs in the ethanol market, is developed conceptually. An ex ante version of the indicator that is based on historical prices and today's technology is calculated for the last 30 years and subjected to time series analysis. Results suggest that there are no trends, but there are cyclical periods of advantage for both industries. Further, long-term averages suggest that profits would be similar in both countries under ideal trade conditions. However, the corn wet-milling industry may have slightly higher profits than other processes and locations. Finally, the U.S. dry-milling industry could improve its competitive position using modified corn varieties with high starch content, and using corn residues for biomass generation of electrical and heat energy.

JEL Classification

F14, L65, Q42

Comments

This article is from Agribusiness 22 (2006): 109, doi: 10.1002/agr.20072.

Rights

Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.

Language

en

File Format

application/pdf

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