Under what conditions would ethanol be in society s best interest
Download
1 / 21

Under What Conditions Would Ethanol be in Society s Best Interest - PowerPoint PPT Presentation


  • 86 Views
  • Uploaded on

Under What Conditions Would Ethanol be in Society’s Best Interest?. Charles B. Moss, Troy G. Schmitz, and Andrew Schmitz. Welfare Effects with Government Programs. Welfare Impacts of a Shift in Corn Demand. Added Effects of Ethanol Measured in the Fuel Market.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Under What Conditions Would Ethanol be in Society s Best Interest' - kalyca


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Under what conditions would ethanol be in society s best interest l.jpg

Under What Conditions Would Ethanol be in Society’s Best Interest?

Charles B. Moss, Troy G. Schmitz, and Andrew Schmitz






Comparisons l.jpg
Comparisons Production





Equilibrium changes l.jpg
Equilibrium Changes Production

  • Original Equilibrium

  • Equilibrium After Ethanol Subsidy



A simplified cge of subsidizing ethanol l.jpg
A Simplified CGE of Subsidizing Ethanol Production

  • Simplify the economy to four outputs

    • Agriculture/Food

    • Manufactured Goods

    • Energy

    • Ethanol

  • Ethanol will be assumed to be an imperfect substitute for energy


Slide13 l.jpg

  • Inputs Production

    • Capital

    • Labor

    • Energy (primary energy)

    • Materials

    • Land


General equilibrium l.jpg
General Equilibrium Production

Capital

Labor

Energy

Materials

Land

Agriculture

Energy

Manufacture

Ethanol

Agriculture

Manufactured

Energy


Production of ethanol biofuels l.jpg
Production of Ethanol ( ProductionBiofuels)

Capital

Labor

Energy

Materials

Ag. Output

Ethanol (Biofuels)

Energy

Ag. Biproduct


Ces production and utility functions l.jpg
CES Production and Utility Functions Production

  • Utility and Production Functions

  • Input and Output Demands


Excess demand relationships l.jpg
Excess Demand Relationships Production

  • Excess Demand Functions

    • First determine the demand for outputs

    • Compute excess demands for inputs


Solution l.jpg
Solution Production

  • Objective Function

    • Income closure

    • Zero profit restriction

    • Price normalization


Input output relationships l.jpg
Input/Output Relationships Production

  • Energy Demand

  • Agricultural Demand

  • Manufactured Goods




ad