Download Free Corn Area Response To Local Ethanol Markets In The United States Book in PDF and EPUB Free Download. You can read online Corn Area Response To Local Ethanol Markets In The United States and write the review.

We measure corn and total agricultural area response to the biofuels boom in the United States from 2006 to 2010. Specifically, we use newly available micro-scale grid cell data to test whether a location's corn and total agricultural cultivation rose in response to the capacity of ethanol refineries in their vicinity. Based on these data, acreage in corn and overall agriculture not only grew in already-cultivated areas but also expanded into previously uncultivated areas. Acreage in corn and total agriculture also correlated with proximity to ethanol plants, though the relationship dampened over the time period. A formal estimation of the link between acreage and ethanol refineries, however, must account for the endogenous location decisions of ethanol plants and areas of corn supply. We present historical evidence to support the use of the US railroad network as a valid instrument for ethanol plant locations. Our estimates show that a location's neighborhood refining capacity exerts strong and significant effects on acreage planted in corn and total agricultural acreage. The largest impacts of ethanol plants were felt in locations where cultivation area was relatively low. This high-resolution evidence of ethanol impacts on local agricultural outcomes can inform researchers and policy-makers concerned with crop diversity, environmental sustainability, and rural economic development.
Expansion of ethanol production in the United States has raised concerns regarding its land-use change effects. However, little is known about the extent to which observed land use change in the United States can be attributed to ethanol plant proximity or is caused by changes in crop prices that may be partly induced by expansion in ethanol production. This study aims to examine the determinants of changes in corn acreage and aggregate crop acreage by simultaneously identifying the effects of establishment of ethanol plants serving as terminal markets for corn and the effects of changes in crop prices in the United States between 2003 and 2014. Our results show that corn acreage and total acreage are fairly inelastic with respect to both changes in ethanol capacity in the vicinity, as well as changes in crop prices. Our estimates of acreage elasticity with respect to corn ethanol production are smaller than those obtained by previous studies that disregard the price effect on crop acreage. We find that, ceteris paribus, the increase in ethanol capacity alone led to a modest 3% increase in corn acreage and less than a 1% increase in total crop acreage by 2012 when compared to 2008. The effect of corn price and aggregate crop price on acreage change from 2008 to 2012 was more than twice larger than that of effective ethanol production capacity over this period; but this price effect was largely reversed by the downturn in crop prices after 2012. This study shows that land-use change is not a static phenomenon and that it is important to examine how it evolves in response to various factors that may change over time.
In recent years, bioeconomy strategies have been implemented and adapted internationally. In the bioeconomy, materials are to a certain extent circular by nature. However, biomaterials may also be used in a rather linear way. Lately, a transition towards a circular economy, a more restorative and regenerative economic model, is being promoted worldwide. A circular economy offers an alternative model aiming at “doing more and better with less”. It is based on the idea that circulating matter and energy will diminish the need for new input. Its concept lies in maintaining the value of products, materials, and resources for as long as possible and at the same time minimizing or even eliminating the amount of waste produced. Focused on “closing the loops”, a circular economy is a practical solution for promoting entrepreneurial sustainability, economic growth, environmental resilience, and a better quality of life for all. The most efficient way to close resource loops is to find value in the waste. Different modes of resource circulation may be applied, e.g., raw materials, by-products, human resources, logistics, services, waste, energy, or water. To that end, this Special Issue seeks to contribute to the circular bioeconomy agenda through enhanced scientific and multidisciplinary knowledge to boost the performance efficiency of circular business models and support decision-making within the specific field. The Special Issue includes innovative technical developments, reviews, and case studies, all of which are relevant to green, closed-loop, circular bioeconomy.
A large expansion in ethanol production is underway in the United States. Cellulosic sources of feedstocks for ethanol production hold some promise for the future, but the primary feedstock in the United States currently is corn. Market adjustments to this increased demand extend well beyond the corn sector to supply and demand for othercrops, such as soybeans and cotton, as well as to the livestock industries. USDA¿s long-term projections, augmented by farmers¿ planting intentions for 2007, are used to illustrate anticipated changes in the agricultural sector. Graphs.
In the United States, we have come to depend on plentiful and inexpensive energy to support our economy and lifestyles. In recent years, many questions have been raised regarding the sustainability of our current pattern of high consumption of nonrenewable energy and its environmental consequences. Further, because the United States imports about 55 percent of the nation's consumption of crude oil, there are additional concerns about the security of supply. Hence, efforts are being made to find alternatives to our current pathway, including greater energy efficiency and use of energy sources that could lower greenhouse gas (GHG) emissions such as nuclear and renewable sources, including solar, wind, geothermal, and biofuels. The United States has a long history with biofuels and the nation is on a course charted to achieve a substantial increase in biofuels. Renewable Fuel Standard evaluates the economic and environmental consequences of increasing biofuels production as a result of Renewable Fuels Standard, as amended by EISA (RFS2). The report describes biofuels produced in 2010 and those projected to be produced and consumed by 2022, reviews model projections and other estimates of the relative impact on the prices of land, and discusses the potential environmental harm and benefits of biofuels production and the barriers to achieving the RFS2 consumption mandate. Policy makers, investors, leaders in the transportation sector, and others with concerns for the environment, economy, and energy security can rely on the recommendations provided in this report.
Model results indicate an expected average marketing year price of $4.97 per bushel and a price volatility of 17.5% without the 10 billion gallon EISA mandate but with maintenance of the $0.51 per gallon tax credit. Imposition of the mandate increases the expected price by 7.1% and price volatility by 12.1%. The effects of the mandate are modest as ethanol production would average 9.5 billion gallons without the mandate because of high gasoline prices. The mandate is binding with a probability of 37.8%, which indicates that an additional tax or subsidy will be needed to ensure that the mandate is met. High corn prices caused by drought can cause the mandate to bind. Fixing 2008 corn yields at extreme drought levels increases expected corn prices to $6.59 per bushel without a mandate and to $7.99 per bushel with the EISA mandate. An average additional subsidy of $0.73 per gallon of ethanol would be needed to ensure that the mandate is met in this drought scenario.
U.S. policy to expand the production of biofuel for domestic energy use has significant implications for agriculture and resource use. While ongoing research and development investment may radically alter the way biofuel is produced in the future, for now, corn-based ethanol continues to account for most biofuel production. As corn ethanol production increases, so does the production of corn. The effect on agricultural commodity markets has been national, but commodity production adjustments, and resulting environmental consequences, vary across regions. Changes in the crop sector have also affected the cost of feed for livestock producers. As the Nation demands more biofuel production, and markets for new biofuel feedstocks, such as crop residues emerge, the agricultural landscape will be further transformed. This book explores the changes and expanding usage of ethanol and corn biofuels.
We investigate how the structures of local corn procurement markets shape the effect of expansion in ethanol production on corn planting decisions in surrounding areas. We first characterize competition intensity as a function of the spatial structure of plant capacities and then econometrically estimate the response in corn acreage to competition intensity at the grid-cell level. We use the estimated parameters to conduct factual and counterfactual experiments quantifying the effect of different sources of capacity expansion on competition intensity and, ultimately, spatial patterns of land cover. We find that an expansion of ethanol capacity of a given magnitude can have disparate effects on total land conversion to corn depending on its source, that is, whether it is due to plant entry, expansion of an incumbent plant, or the location where the expansion occurs. Expansions that increase competition intensity the most also trigger the most land conversion. This is because, as spatial competition for corn intensifies, plants are forced to procure more from the intensive margin, where additional corn can only be obtained from land conversion. We also find that competitive spillovers trigger land conversion in grid cells that are not within the procurement area of a new plant or of a plant that expands capacity. Our results underscore the importance of considering market structure when quantifying local land use changes associated with ethanol capacity expansion.