@article{Wamisho:126862,
      recid = {126862},
      author = {Wamisho, Kassu},
      title = {The Shadow Price of GHG Reduction in Corn Ethanol Plants},
      address = {2012},
      number = {1007-2016-79501},
      pages = {20},
      year = {2012},
      abstract = {This article examines the cost of reducing CO2 emissions  in a sample of recently built dry-grind corn ethanol  plants. The analysis estimates a translog minimum value  function that represents both the minimum cost and the  minimum CO2 emissions for given levels of ethanol  production. The results indicate that the average plant is  able to reduce GHG emissions by 36 percent relative to the  level under cost minimization, but production costs are 22  percent higher. The reallocations by which these emissions  reductions are achieved are primarily the substitution of  wet for dry distillers grains, with the corresponding  reduction in the use of natural gas and electricity. To  move from least cost to least emissions allocations,  ethanol plants would on average produce 25 % more of wet  byproduct and 47% less of dry byproduct. Comparing results  across observations, the estimated shadow cost of emission  abatement ranges from $86 to $190 per ton of CO2, with  average value of $124 per ton. This implied shadow cost of  abatement can be used as a bench mark for pollution trading  and serves to assess the potential response to biofeul  regulations.},
      url = {http://ageconsearch.umn.edu/record/126862},
      doi = {https://doi.org/10.22004/ag.econ.126862},
}