Spatial Competition and Economics of Biofuels from Corn Stover
No hay miniatura disponible
Fecha
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
This paper develops a model of spatial competition nesting the classical Zhang and Sexton (2001) duopsony and spatial monopsony in order to evaluate the effects of alternative stover market structures on stover prices, supply of biofuels, and firm profits. We show theoretically, as well as in an empirical implementation calibrated to reflect supply conditions in Indiana, that spatial competition may significantly increase feedstock cost, reduce profits of biofuels plants, and decrease a plant’s optimal scale of production and supply elasticity.