Given these assumptions and according to the predetermined supply and demand elasticities, the model determines equilibrium prices and their corresponding quantities for given exogenous variables defined in the model (such as crude oil price). The model evaluates profitability of the ethanol and bio-gasoline industries and assumes that these industries will expand/contract until profits reach zero. The model also includes a technology which converts corn stover to bio-gasoline (a drop-in biofuel). The PE model links gasoline, corn ethanol, dried distiller grains, corn, soybeans, and soybean meal markets in the presence and absence of a viable market for corn stover. This paper first develops a partial equilibrium (PE) model to examine impacts of converting corn stover to biofuel on markets for corn and soybeans at the national market level.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |