top of page

Published Paper

1540-1200

Journal of American Academy of Business, Cambridge

Journal of American Academy of Business, Cambridge

Ethanol Demand Growth and Related Impact on Corn and Poultry Markets

Ellene Kebede, Curtis Majela Jolly, Giap Nguyen

DOI:
Từ khoá:

Corn Price, Ethanol, Ethanol Price, Poultry, Poulty Price

Nguyễn Văn Giáp

Giáp Nguyễn

Tóm tắt

This paper used the Muth model to exemplify the market linkages among the com, ethanol and poultry industries. Ethanol demand is price inelastic, but the blenders' tax credit has a positive and significant effect in lowering the price of ethanol, increasing ethanol demand and increasing com demand. Information from derived ethanol supply functions was used to compute the marginal effect on poultry prices of changes in ethanol production. Four different elasticities of substitution between com and non-com input in ethanol and poultry production were used in the estimation. The result showed that the increase in the elasticity of substitution between com and non-com inputs in both industries will reduce the effect on poultry prices. This research indicates a long-run need for non-com input in both industries in order to reduce the effect on the three markets and the rest of the economy.

Ellene Kebede, Curtis Majela Jolly, Giap Nguyen (2009), "Ethanol Demand Growth and Related Impact on Corn and Poultry Markets", Journal of American Academy of Business, Cambridge, 15, (1), pp. 1-8

bottom of page