Washington Biofuel Feedstock Supply under Price Uncertainty

Biofuels, as alternative transportation fuels, are now being used globally. Taking advantage of in-state feedstock supply is an efficient way to stimulate in-state biofuel industries and the local economy. This paper uses the mean-variance model of utility maximization to estimate supply equations for major biofuel feedstock crops in Washington. We consider price risk, examine the comparative statics results of the model, and use the results to draw important decision-making implications for Washington farmers who are considering production of biofuel feedstocks. Of three potential feedstock crops, only one shows immediate promise in Washington.


Issue Date:
2008
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/42304
Total Pages:
21




 Record created 2017-04-01, last modified 2017-12-10

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