A general theory is developed to analyze the efficiency and income distribution effects of a biofuel consumer tax credit and the interaction effects with a price contingent farm subsidy. Using the U.S. ethanol market as a stylized example, ethanol prices rise above the gasoline price by the...

This paper analyzes the impact of an ethanol import tariff in conjunction with a consumption mandate and tax credit. A tax credit alone acts as a subsidy to ethanol producers, equally benefiting exporters like Brazil. If an import tariff is imposed to offset the tax credit, world prices of...

Leakage in the fuel market differs, depending on whether ethanol production is determined by a tax credit or consumption mandate. Two components of market leakage are distinguished: domestic and international. Leakage with both a tax credit and a consumption mandate depends on market...

Traditional models of export bonus programs focus only on the effects of disposing public stocks on the world market. We show that the economic effects of export bonus programs are significantly different when one includes the costs of acquiring these stocks. Including stock acquisition costs...

The recent commodity boom was the longest and broadest of the post-World War II period. Although most prices have declined sharply since their mid-2008 peak, they are still considerably higher than 2003, the beginning of the boom. Apart from strong and sustained economic growth, the recent boom...

The recent commodity boom was the longest and broadest of the post-World War II period. Although most prices have declined sharply since their mid-2008 peak, they are still considerably higher than 2003, the beginning of the boom. Apart from strong and sustained economic growth, the recent boom...

The demand for and supply of U.S. wheat, corn, and soybean exports is specified in a dynamic framework. Obtained results indicate differences in the export behavior of each product. U.S. corn exports are elastic, while U.S. soybean exports exhibit an inelastic response. For wheat, the derived...