Ethanol Plant Location and Land Use: A Case Study of CRP and the Ethanol Mandate. (29th May 2018)

• Record Type: Journal Article
• Authors: Ifft, Jennifer; Rajagopal, Deepak; Weldzuis, Ryan
• Is Part Of: Applied economic perspectives and policy. Volume 41:Number 1(2019)
• Page Start: 37
• Page End: 55
• Publication Date: 2018-05-29
• Subjects: Conservation Reserve Program -- Renewable Fuel Standard -- Ethanol; Agriculture -- Economic aspects -- Periodicals; Agriculture and state -- Periodicals; 338.105
• DOI: 10.1093/aepp/ppy007
• Languages: English
• ISSNs: 2040-5790

Abstract

Abstract: This study uses a county‐level difference‐in‐difference framework to estimate the share of re‐enrollment into the Conservation Reserve Program (CRP) in response to local ethanol production capacity after the Renewable Fuels Standard (RFS). Relatively more land remained in CRP in ethanol‐intensive areas after the RFS. This seemingly counter‐intuitive result can be explained by post‐RFS changes to the CRP that favored ethanol‐intensive areas. Both CRP design changes and production trends correlated with ethanol plant location pose challenges for empirical strategies that use ethanol plant location to study production or land use decisions. Changes to CRP policies can play an important role in participation and land use decisions.