Hostname: page-component-78c5997874-s2hrs Total loading time: 0 Render date: 2024-11-04T21:03:45.607Z Has data issue: false hasContentIssue false
  • English
  • Français

Economics of Sugar-Based Ethanol Production and Related Policy Issues

Published online by Cambridge University Press:  28 April 2015

Joe L. Outlaw ,
Luis A. Ribera ,
James W. Richardson ,
Jorge da Silva ,
Henry Bryant  and
Steven L. Klose
Joe L. Outlaw
Affiliation:
Texas A&M University
Luis A. Ribera
Affiliation:
Texas A&M University
James W. Richardson
Affiliation:
Texas A&M University
Jorge da Silva
Affiliation:
Texas A&M University
Henry Bryant
Affiliation:
Texas A&M University
Steven L. Klose
Affiliation:
Texas A&M University
Get access Rights & Permissions [Opens in a new window]

Abstract

The feasibility of integrating ethanol production into an existing sugar mill was analyzed by a stochastic spreadsheet model. As the price of corn continues to rise, ethanol producers will eventually need to look at other feedstock alternatives. Sugarcane has been proven to work well in the production of ethanol in Brazil. The results indicated existing U.S. sugar mills could economically switch to ethanol production. As imports into the United States threaten to undermine the U.S. sugar program, sugarcane producers have a viable alternative. At the very least, the alternative exists to diversify their income streams with ethanol production.

Keywords

ethanolfeasibility analysissimulation analysissugarcaneR51R58O22
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 39 , Issue 2 , August 2007 , pp. 357 - 363
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

Bryan and Bryan International. Dumas Texas Area Ethanol Feasibility Study. Cotopaxi, CO: Bryan and Bryan International, August 2001.Google Scholar
Bryan and Bryan International. Economic Impact Assessment for Ethanol Production and Use in Hawaii. Golden, CO: Bryan and Bryan International, November 14 2003.Google Scholar
Bryant, H., Outlaw, J., Richardson, J., Higgins, L., and Campiche, J.. “Effects of Recent Fossil Energy Market Developments on US Ethanol.” College Station, TX: Texas A&M University, Agricultural and Food Policy Center, Briefing Paper 06-5, September 2006.Google Scholar
Campos, R. Personal Communication. Export Manager—Alcohol, Dedini, Piracicaba, Sao Paulo, Brazil, March 2006.Google Scholar
Chaves, I. Personal Communication. CEO— Chaves Consultoria, Riberao Preto, Sao Paulo, Brazil, August 2006.Google Scholar
Cochran, M.J., Richardson, J.W., and Nixon, C.. “Economic and Financial Simulation for Small Business: A Discussion of the Small Business Economic, Risk, and Tax Simulator.” Simulation 54,4(1990):177–88.CrossRefGoogle Scholar
Ethanol Producer Magazine. Plant List. Internet site: www.ethanolproducer.com/plant-list.jsp (Accessed March 9, 2007).Google Scholar
FAPRI (Food and Agricultural Policy Research Institute). February 2007 Baseline. Columbia, MO: University of Missouri, FAPRI, 2007.Google Scholar
Fernandes, A.Cálculos na Agroindustria da Cana-de-açùcar, 2nd ed. Piracicaba, Brazil: Sociedade dos Técnicos Açucareiros e Alcooleiros do Brazil, 2003.Google Scholar
Gallagher, P., Schamel, G., Shapouri, H., and Brubaker, H.. “The International Competitiveness of the U.S. Corn-Ethanol Industry: A Comparison with Sugar-Ethanol Processing in Brazil.” Agribusiness 22,1 (2006): 109-34.CrossRefGoogle Scholar
Lau, M. “Location of an Agribusiness Enterprise with Respect to Economic Viability: A Risk Analysis.” Ph.D. dissertation. Texas A&M University, December 2004.Google Scholar
Lord, R.Sugar: Background for 1995 Farm Legislation. Washington, DC: U.S. Department of Agriculture, Economic Research Service, Agricultural Economic Report 711, April 1995.Google Scholar
Outlaw, J.L., Anderson, D.P., Klose, S.L., Richardson, J.W., Herbst, B.K., Waller, M.L., Raulston, J.M., Sneary, S.L., and Gill, R.C.. An Economic Examination of Potential Ethanol Production in Texas. College Station, TX: Texas A&M University, Agricultural and Food Policy Center, Research Report 03-1, February 2003.Google Scholar
Renewable Fuels Association. Industry Statistics. Internet site: www.ethanolrfa.org/industry/statistics/ (Accessed March 9, 2007).Google Scholar
Reutlinger, S. “Techniques for Project Appraisal Under Uncertainty.” World Bank Staff Occasional Papers Number Ten. Baltimore, MD: John Hopkins University Press, 1970.Google Scholar
Richardson, J.W., Herbst, B.K., Outlaw, J.L., and Gill, R.C. III. Including Risk in Economic Feasibility Analyses: The Case of Ethanol Production in Texas. College Station, TX: Texas A&M University, Agricultural and Food Policy Center, 2007.Google Scholar
Richardson, J.W., Klose, S.L., and Gray, A.W.. “An Applied Procedure for Estimating and Simulating Multivariate Empirical (MVE) Probability Distributions in Farm-Level Risk Assessment and Policy Analysis.” Journal of Agricultural and Applied Economics 32,2(August 2000):299–315.CrossRefGoogle Scholar
Richardson, J.W., Lien, G., and Hardaker, B.. “Simulating Multivariate Distributions with Sparse Data: A Kernel Density Smoothing Procedure.” Poster paper prepared for presentation at the International Association of Agricultural Economists Conference, Gold Coast, Australia, August 12-18, 2006.Google Scholar
Richardson, J.W., and Mapp, H.P. Jr. “Use of Probabilistic Cash Flows in Analyzing Investments Under Conditions of Risk and Uncertainty.” Southern Journal of Agricultural Economics 8(December 1976):19–24.Google Scholar
Richardson, J.W., Schumann, K.D., and Feldman, P.A.. Simetar: Simulation & Simulation to Analyze Risk. College Station, TX: Department of Agricultural Economics, Texas A&M University, 2006.Google Scholar
Shapouri, H., Salassi, M., and Fairbanks, J.N.. The Economic Feasibility of Ethanol Production from Sugar in the United States. U.S. Department of Agriculture, Economic Research Service and Louisiana State University Agricultural Center, July 2006. Internet site: www.usda.gov/oce/reports/energy/EthanolSugarFeasibilityReport3.pdf (Accessed August 6, 2006).Google Scholar
U.S. Department of Agriculture, Economic Research Service. Briefing Rooms, Sugar and Sweeteners: Background. Internet site: www.ers.usda.gov/Briefing/Sugar/Background.htm (Accessed March 9, 2007).Google Scholar