A Welfare Analysis of the U.S. Ethanol Subsidy

dc.contributor.author Du, Xiaodong
dc.contributor.author Hayes, Dermot
dc.contributor.author Baker, Mindy
dc.contributor.department Economics
dc.contributor.department Finance
dc.contributor.department Center for Agricultural and Rural Development
dc.date 2018-02-18T02:27:28.000
dc.date.accessioned 2020-06-30T02:06:58Z
dc.date.available 2020-06-30T02:06:58Z
dc.date.issued 2009-01-01
dc.description.abstract <p>Based on a transparent analytical model of multiple markets including corn, ethanol, gasoline, and transportation fuel, this study estimates the welfare changes for consumers and producers resulting from ethanol production and related support polices in 2007. The welfare estimation takes into account the second-best gain from eliminating loan deficiency payments. The results suggest the total social cost is about $0.78 billion for given market parameters. We validate the model's underlying assumption and test for the results' sensitivity to assumed parameters.</p>
dc.description.comments <p>This working paper was published as Du, Xiaodong, Dermot J. Hayes and Mindy L. Mallory, " <em>Applied Economic Perspectives and Policy</em> 31 (2009): 669–676, doi:<a href="http://dx.doi.org/10.1111/j.1467-9353.2009.01460.x" target="_blank">10.1111/j.1467-9353.2009.01460.x</a>.</p>
dc.identifier archive/lib.dr.iastate.edu/econ_las_pubs/419/
dc.identifier.articleid 1414
dc.identifier.contextkey 9468612
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_pubs/419
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/21632
dc.source.uri http://lib.dr.iastate.edu/cgi/viewcontent.cgi?article=1501&context=card_workingpapers
dc.subject.disciplines Agricultural and Resource Economics
dc.subject.disciplines Economic Theory
dc.subject.disciplines Finance
dc.subject.disciplines Industrial Organization
dc.subject.disciplines Public Economics
dc.subject.keywords consumer surplus
dc.subject.keywords deadweight loss
dc.subject.keywords ethanol
dc.subject.keywords subsidy
dc.subject.keywords substitution
dc.title A Welfare Analysis of the U.S. Ethanol Subsidy
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
relation.isOrgUnitOfPublication e2432527-158f-465f-8301-f4ab4c262f9b
relation.isOrgUnitOfPublication 1a6be5f1-4f64-4e48-bb66-03bbcc25c76d
File
Collections