An Analysis of the Link between Ethanol, Energy, and Crop Markets

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.


Issue Date:
2006
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/18453
Total Pages:
53
Note:
Replaced with revised version of paper 12/06/06.
Series Statement:
CARD Working Paper 06-WP 435




 Record created 2017-04-01, last modified 2017-08-24

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