EVALUATING THE IMPACTS OF AN INCREASE IN FUEL-ETHANOL DEMAND ON AGRICULTURE AND THE ECONOMY
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Fuel ethanol demand is projected to increase because of proposed ban on methyl tertiary butyl ether (MTBE) in gasoline, renewable fuels standard, and the revised eight-hour ozone standards. In this paper, several scenarios of increased fuel ethanol demand and its effects on crop and feed prices, farm income and state finances under current tax-subsidy structure, are analyzed using a multi-sector econometric model AGMOD.