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Economics of Sugar-Based Ethanol Production and Related Policy Issues

Published online by Cambridge University Press:  28 April 2015

Joe L. Outlaw ,
Luis A. Ribera ,
James W. Richardson ,
Jorge da Silva ,
Henry Bryant  and
Steven L. Klose
Joe L. Outlaw
Affiliation:
Texas A&M University
Luis A. Ribera
Affiliation:
Texas A&M University
James W. Richardson
Affiliation:
Texas A&M University
Jorge da Silva
Affiliation:
Texas A&M University
Henry Bryant
Affiliation:
Texas A&M University
Steven L. Klose
Affiliation:
Texas A&M University
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Abstract

The feasibility of integrating ethanol production into an existing sugar mill was analyzed by a stochastic spreadsheet model. As the price of corn continues to rise, ethanol producers will eventually need to look at other feedstock alternatives. Sugarcane has been proven to work well in the production of ethanol in Brazil. The results indicated existing U.S. sugar mills could economically switch to ethanol production. As imports into the United States threaten to undermine the U.S. sugar program, sugarcane producers have a viable alternative. At the very least, the alternative exists to diversify their income streams with ethanol production.

Keywords

ethanolfeasibility analysissimulation analysissugarcaneR51R58O22
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 39 , Issue 2 , August 2007 , pp. 357 - 363
Copyright
Copyright © Southern Agricultural Economics Association 2007

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