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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
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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

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