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Impact of Expanded United States Sugar Imports from CAFTA Countries on the Ethanol Market AgEcon
Yeboah, Osei-Agyeman; Parker, S. Janine.
The need to decrease the United States’ dependency on oil has pushed ethanol to the forefront of energy sources. In the U.S., corn is used to make ethanol. Corn-based ethanol production has been profitable over the past few years, but there has been a near doubling of corn prices in late 2006 and early 2007 (Outlaw, et. al., 2007). The trend is a constant rise in prices, which has given way to ethanol production by other sources of raw materials like sugarcane. Sugarcane ethanol is the most cost-efficient biofuel available anywhere in the world, and in the United States, the government supports sugar prices. Through the US sugar policy, sugar prices are controlled, and foreign imports are severely limited. Brazil is leading the way in sugarcane ethanol,...
Tipo: Conference Paper or Presentation Palavras-chave: Ethanol; Sugarcane; Sugar; CAFTA-DR; Alternative Fuels; Biofuels; International Relations/Trade.
Ano: 2008 URL: http://purl.umn.edu/46027
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Strategic Resource Dependence AgEcon
Gerlagh, Reyer; Liski, Matti.
We consider a situation where an exhaustible-resource seller faces demand from a buyer who has a perfect substitute but there is a time-to-build delay for the substitute. We that find in this simple framework the basic implications of the Hotelling model (1931) are reversed: over time the stock declines but supplies increase up to the point where the buyer decides to switch. Under such a threat of demand change, the supply does not reflect the true current resource scarcity but leads to increased future scarcity, felt during the transition to the substitute supplies. The analysis suggests a perspective on costs of oil dependence.
Tipo: Working or Discussion Paper Palavras-chave: Dynamic Bilateral Monopoly; Markov-Perfect Equilibrium; Depletable Resources; Energy; Alternative Fuels; Oil Dependence; Resource /Energy Economics and Policy; D4; D9; O33; Q40.
Ano: 2008 URL: http://purl.umn.edu/44222
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