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BIODIESEL AS A SUBSTITUTE FOR PETROLEUM DIESEL IN A STOCHASTIC ENVIRONMENT AgEcon
Tareen, Irfan Y.; Wetzstein, Michael E.; Duffield, James A..
The objective of the research presented in this paper is the development of a stochastic adoption threshold. The option pricing approach for modeling investment under uncertainty is extended for the case of comparing two stochastic input prices associated with inputs that are perfect substitutes in a production process. Based on this methodology, a threshold decision rule influenced by the drift and volatility of these two input prices is developed. Theoretical results established an empirical link for measuring the tradeoff of a relatively more expensive input (biodiesel) with lower price drift and volatility compared with a lower but more volatile priced input (petroleum diesel).
Tipo: Journal Article Palavras-chave: Option pricing; Production; Renewable fuels; Technology adoption under uncertainty; Resource /Energy Economics and Policy.
Ano: 2000 URL: http://purl.umn.edu/15505
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BIODIESEL AS A SUBSTITUTE FOR PETROLEUM DIESEL IN A STOCHASTIC ENVIRONMENT AgEcon
Tareen, Irfan Y.; Duffield, James A.; Wetzstein, Michael E..
Policy makers should consider price volatility effects when determining appropriate spending levels for alternative fuel programs.
Tipo: Conference Paper or Presentation Palavras-chave: Resource /Energy Economics and Policy.
Ano: 1999 URL: http://purl.umn.edu/21675
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SLIPPAGE IN FORECASTING IRRIGATION WATER DEMAND: AN APPLICATION TO THE GEORGIA FLINT RIVER BASIN AgEcon
Tareen, Irfan Y.; Gunter, Lewell F.; Bramblett, Jimmy; Wetzstein, Michael E..
This study identifies the presence of slippage and the pitfalls associated with not considering economic substitution and expansion effects in measuring changes in water demand. Based on estimates from the Georgia Flint River Basin, the analysis indicates a 13% slippage caused by disregarding the role of economic determinants.
Tipo: Conference Paper or Presentation Palavras-chave: Resource /Energy Economics and Policy.
Ano: 2002 URL: http://purl.umn.edu/19852
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Forecasting Irrigation Water Demand: A Case Study on the Flint River Basin in Georgia AgEcon
Banerjee, Swagata (Ban); Tareen, Irfan Y.; Gunter, Lewell F.; Bramblett, Jimmy; Wetzstein, Michael E..
Southeast drought conditions have accentuated the demand for irrigation in the face of restricted water supply. For allocating this supply, Georgia held an auction for withdrawing irrigated acreage. This auction withdrew 33,000 acres from irrigation, resulting in a physical estimate of a 399 acre-feet daily increase in water flow. The actual reduction is driven by crop distributional changes on the basis of economic substitution and expansion effects. In contrast to the physical estimates, an econometric model that considers these effects is developed. The differences between the physical and econometric models result in an increase in the estimate of water savings of around 19% to 24%.
Tipo: Journal Article Palavras-chave: Acreage response; Crop distribution; Irrigated acreage; Irrigation; Slippage; Water demand; Water saving; Q12; Q24.
Ano: 2007 URL: http://purl.umn.edu/37053
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