Hostname: page-component-cd9895bd7-fscjk Total loading time: 0 Render date: 2024-12-25T02:25:07.960Z Has data issue: false hasContentIssue false
  • English
  • Français

Economic Parameters for Corn Ethanol and Biodiesel Production

Published online by Cambridge University Press:  28 April 2015

Vernon R. Eidman
Vernon R. Eidman*
Affiliation:
Department of Applied Economics, University of Minnesota, St. Paul, MN
Get access Rights & Permissions [Opens in a new window]

Abstract

This article presents current investment and operating costs of ethanol and biodiesel plants for alternative prices of feedstock. The price of these two fuels is estimated for alternative prices of crude oil with the existing renewable fuels policy. The excise tax credit, currently $0.51 per gallon of ethanol and $1.00 per gallon of biodiesel, is a major contributor to the fuel price and profitability of these industries. The analysis demonstrates how the crude oil price, feedstock price, and excise tax credits interact to impact profitability of these industries.

Keywords

biodieselbiofuelsethanolrenewable energyQ13Q18Q28Q42
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 39 , Issue 2 , August 2007 , pp. 345 - 356
Copyright
Copyright © Southern Agricultural Economics Association 2007

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Collins, K. “Economic Issues Related to Biofuels.” Statement presented to U.S. Senate Committee on Appropriations. Northern Plains Research Lab, Sidney, MT. August 26, 2006.Google Scholar
Cooper, G. “A Brief, Encouraging Look at Theoretical Distillers Grain Markets.” Distillers Grains Quarterly 1(first quarter 2006):14–17.Google Scholar
Distillers Grains Feeding Recommendations. University of Minnesota. Internet site: http://www.ddgs.umn.edu/feeding.htm (Accessed November 2006).Google Scholar
Ginder, R., and Paulson, N.. “The Developing Biodiesel Industry.” Paper presented at the AAEA Annual Meeting, Long Beach, CA. July 24, 2006.Google Scholar
Krissek, G. “US Dry Grind Ethanol Industry Expansion and Technology.” Paper presented at the conference “Ethanol: The New Energy Paradigm,” Informa Economics and F.O. Licht. San Antonio, TX. January 11, 2007.Google Scholar
National Biodiesel Board. Internet site: http://www.biodiesel.org/fuelfacts/default.shtn (Accessed January 15, 2007).Google Scholar
Nebraska Government Website. Ethanol and Unleaded Gasoline Average Rack Prices. Internet site: http://www.neo.ne.gov/statshtml/c6.html (Accessed September 25, 2006).Google Scholar
Nicola, D.F. “Economies of Scale in Ethanol Production Under Different Fuel Technologies.” M.S. Plan B Research Paper, University of Minnesota. December 2005.Google Scholar
Renewable Fuels Association. Internet sites: http://www.ethanolrfa.org/industry/statistics (Accessed January 15, 2007) and http://www.ethanolrfa.org/policy/regulations/federal (Accessed January 16, 2007).Google Scholar
Tiffany, D.G., and Eidman, V.R.. “Factors Associated With Success of Fuel Ethanol Producers.” Staff Paper P03-07, Department of Applied Economics, University of Minnesota, St. Paul. 2003.Google Scholar
U.S. Department of Agriculture-Foreign Agricultural Service (D ASF AS). U.S. Trade Statistics. Internet site: http//:www.fas.usda.gov/ustrdscripts/USReport.exe (Accessed February 16, 2007).Google Scholar
U.S. Department of Energy (DOE)-Energy Information Administration. Eliminating MTBE in Gasoline in 2006. Washington, D.C. 2006.Google Scholar
U.S. Department of Energy (DOE)-Energy Information Administration. Petroleum Navigator. Internet site: http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html (Accessed January 17, 2007).Google Scholar