Publication Date
11-2006
Series Number
06-WP 435
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.
Recommended Citation
Tokgoz, Simla and Elobeid, Amani E., "An Analysis of the Link between Ethanol, Energy, and Crop Markets" (2006). CARD Working Papers. 444.
https://lib.dr.iastate.edu/card_workingpapers/444
Included in
Agricultural and Resource Economics Commons, Agricultural Economics Commons, Industrial Organization Commons, Oil, Gas, and Energy Commons
