Economics of Sugar-Based Ethanol Production and Related Policy Issues

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 producti...

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Bibliographic Details
Published in:Journal of agricultural and applied economics 2007-08, Vol.39 (2), p.357-363
Main Authors: Outlaw, Joe L., Ribera, Luis A., Richardson, James W., Silva, Jorge da, Bryant, Henry, Klose, Steven L.
Format: Article
Language:English
Subjects:
agricultural policy
Corn
Costs
econometric models
economic analysis
economic impact
Ethanol
ethanol production
Feasibility
feasibility analysis
Feasibility studies
feedstocks
Fermentation
Financial statements
Investments
Invited Paper Sessions
Monte Carlo simulation
Natural gas prices
Net present value
O22
profitability
R51
R58
Raw materials
Session Title: Alternative Renewable Energy from Agriculture: Transition Issues Papers
simulation analysis
simulation models
Sugarcane
sugars
Syrups & sweeteners
Variables
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Summary: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.
ISSN:1074-0708
2056-7405
1074-0708
DOI:10.1017/S1074070800023051