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The Response of Corn Acreage to Ethanol Plant Siting

Published online by Cambridge University Press:  26 January 2015

Yehushua Shay Fatal  and
Walter N. Thurman
Yehushua Shay Fatal
Affiliation:
University of North Carolina's Kenan-Flagler Business School, Chapel Hill, North Carolina
Walter N. Thurman
Affiliation:
Department of Agricultural and Resource Economics at, North Carolina State University, Raleigh, North Carolina
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Abstract

U.S. ethanol production capacity increased more than threefold between 2002 and 2008. We study the effect of this growth on corn acreage. Connecting annual changes in county-level corn acreage to changes in ethanol plant capacities, we find a positive effect on planted corn. The building of a typical plant is estimated to increase corn in the county by over 500 acres and to increase acreage in surrounding counties up to almost 300 miles away. All ethanol plants are estimated to increase corn production by less than their annual requirements.

Keywords

bioenergybiofuelsbootstrapcornenergyethanolrenewablespatialQ13Q15Q16Q18
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 46 , Issue 2 , May 2014 , pp. 157 - 171
Copyright
Copyright © Southern Agricultural Economics Association 2014

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