Economic impacts of ethanol production from maize stover in selected midwestern states.

Abstract

AbstractThis chapter provides estimates of economic impacts if stover-to-ethanol plants are established in the current maize producing states of the USA. The economic impact indicators used in the analysis include total industry output, employment, and value-added. Results indicate that an ethanol plant provides substantial estimated economic impacts for total industry output and employment. It is also shown that the number of feasible ethanol plants in each state could vary substantially based on the prices of ethanol and maize stover and plant size. Finally, the economic potential of increased ethanol production can be better summarized when considering the case where producers are guaranteed US$1.35/gal at a break-even price scenario for a 2000-MT/day plant. For this scenario, an estimated 72 plants would be constructed, 8.8 billion gal of ethanol would be produced, US$1.0 billion in gross income to agricultural producers would occur, and an estimated economic impact of US$14 billion in the rural economies of the 10-state region would be realized.