Impact of Ethanol Mandates on Corn Prices in the U.S., Canada, and Mexico


The objective of this paper is to investigate the impact of U.S. and Canadian ethanol mandates on com prices in the U.S., Canada, and Mexico. Ethanol mandates were enacted to create viable alternate energy sources to oil and reduce greenhouse gas emissions. Since the majority of ethanol production comes from com, it has led to corn being diverted from a food and feed source to an energy source. While food diversion causes relatively little concern for Canada and US, the rising corn prices have produced social unrest in Mexico where com is a staple food and spending on food forms a large part of consumption spending. Our results indicate that both the US and Canadian ethanol mandates resulted in an increase in com prices in the U.S. as well as in Mexico (Q02 Q17, Q18, Q38, F13). [ABSTRACT FROM AUTHOR] Copyright of Journal of Economics (0361-6576) is the property of Missouri Valley Economic Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)



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Journal of Economics (0361-6576)