The resurgence of interest in ethanol production has also prompted interest in Texas. Projected net present values for ethanol plant investment are well below zero for corn based ethanol plants, but are positive for sorghum. Sensitivity analysis indicates relatively small increases in ethanol...

Ethanol production in 15, 30, and 80 million gallon per year production plants are analyzed at various subsidy levels. The results indicate that removing per plant subsidy limits allows reduced total state subsidy expenditures. This action takes advantage of the economies of scale inherent in...