The Economics of Spatial Competition for Corn Stover

This paper develops an empirical model of spatial competition in order to evaluate the effects of alternative corn stover market structures on stover prices, supply of cellulosic biofuels, and firm profits. We calibrate the model to market conditions in Indiana and show that spatial competition may significantly increase feedstock cost, reduce profits of biofuels plants, and increase the price of biofuel necessary to induce a given production target. On the other hand, spatial competition causes firms to rely more on the intensive margin, increasing farmers’ share of the industry’s surplus.


Issue Date:
2015-09
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/210549
Published in:
Journal of Agricultural and Resource Economics, Volume 40, Number 3
Page range:
425-441
Total Pages:
17




 Record created 2017-04-01, last modified 2017-08-28

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