Document Type

Working Paper

Publication Date


Working Paper Number

WP #13014, August 2013


We develop a long-run cost model for cellulosic biofuel production that accounts for locational differences in biomass production conditions. The cost model minimizes the per-gallon cost of biofuel when feedstock costs vary within local biomass-producing regions and plant size is determined by local feedstock supply and size economies. Applying the model, we estimate U.S. ethanol supply costs from both corn stover and switchgrass. Model results are used to identify the locations and specific plant sizes from which stover-and switchgrass-based ethanol would meet cellulosic biofuel targets at least cost.

JEL Classification

Q16, Q11, Q42, Q41, Q48

File Format



32 pages

Included in

Economics Commons