NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Who Did the Ethanol Tax Credit Benefit? An Event Analysis of Subsidy Incidence

David A. Bielen, Richard G. Newell, William A. Pizer

NBER Working Paper No. 21968
Issued in February 2016
NBER Program(s):   EEE   IO   PE

Using commodity futures contract and spot prices, we estimate the incidence of the US ethanol subsidy accruing to corn farmers, ethanol producers, gasoline blenders, and gasoline consumers at expiration in 2011. We find compelling evidence that ethanol producers captured two-thirds of the subsidy, and suggestive evidence that a small portion of this benefit accrued to corn farmers. The remaining one-third appears to have been captured by blenders, as we find no evidence that oil refiners or gasoline consumers captured any part of the subsidy. This paper contributes to understanding of biofuels markets and policy and empirical estimation of economic incidence.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w21968

Users who downloaded this paper also downloaded* these:
Muller and Ruud w21966 What Forces Dictate the Design of Pollution Monitoring Networks?
Reinhart, Reinhart, and Trebesch w21958 Global Cycles: Capital Flows, Commodities, and Sovereign Defaults, 1815-2015
Jürges, Thiel, and Börsch-Supan w21972 Healthy, Happy and Idle: Estimating the Health Capacity to Work at Older Ages in Germany
Kahn, Kok, and Liu w21912 Is California More Energy Efficient than the Rest of the Nation? Evidence from Commercial Real Estate
Shue and Townsend w21975 Growth through Rigidity: An Explanation for the Rise in CEO Pay
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us