Impact of Ethanol Plants on Local Land Use Change

We investigate effects of corn-based ethanol plants on local land uses using county-level panel data for Iowa for 1997 through 2009 and an Arellano-Bond difference-generalized method-of-moments estimator. Our results show that ethanol plants have statistically significant effects on the proportion of acres planted to corn in the plants' host counties. Furthermore, ceteris paribus, the land-use-change effect of locally owned plants (owned by local farmers or cooperatives) is about twice as large as the effect of plants with nonlocal owners. Environmental implications of the land-use change effect also are explored.


Issue Date:
2013-08
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/155314
Published in:
Agricultural and Resource Economics Review, Volume 42, Number 2
Page range:
291-309
Total Pages:
19




 Record created 2017-04-01, last modified 2017-04-28

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