TY - JOUR
T1 - The economic effects of covid-19 on the producers of ethanol, corn, gasoline, and oil
AU - Schmitz, Andrew
AU - Moss, Charles B.
AU - Schmitz, Troy G.
N1 - Publisher Copyright:
© 2020 De Gruyter. All rights reserved.
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2020/11/1
Y1 - 2020/11/1
N2 - The COVID-19 crisis created large economic losses for corn, ethanol, gasoline, and oil producers and refineries both in the United States and worldwide. We extend the theory used by Schmitz, A., C. B. Moss, and T. G. Schmitz. 2007. “Ethanol: No Free Lunch.” Journal of Agricultural & Food Industrial Organization 5 (2): 1–28 as a basis for empirical estimation of the effect of COVID-19. We estimate, within a welfare economic cost-benefit framework that, at a minimum, the producer cost in the United States for these four sectors totals $176.8 billion for 2020. For U.S. oil producers alone, the cost was $151 billion. When world oil is added, the costs are much higher, at $1055.8 billion. The total oil producer cost is $1.03 trillion, which is roughly 40 times the effect on U.S. corn, ethanol, and gasoline producers, and refineries. If the assumed unemployment effects from COVID-19 are taken into account, the total effect, including both producers and unemployed workers, is $212.2 billion, bringing the world total to $1266.9 billion.
AB - The COVID-19 crisis created large economic losses for corn, ethanol, gasoline, and oil producers and refineries both in the United States and worldwide. We extend the theory used by Schmitz, A., C. B. Moss, and T. G. Schmitz. 2007. “Ethanol: No Free Lunch.” Journal of Agricultural & Food Industrial Organization 5 (2): 1–28 as a basis for empirical estimation of the effect of COVID-19. We estimate, within a welfare economic cost-benefit framework that, at a minimum, the producer cost in the United States for these four sectors totals $176.8 billion for 2020. For U.S. oil producers alone, the cost was $151 billion. When world oil is added, the costs are much higher, at $1055.8 billion. The total oil producer cost is $1.03 trillion, which is roughly 40 times the effect on U.S. corn, ethanol, and gasoline producers, and refineries. If the assumed unemployment effects from COVID-19 are taken into account, the total effect, including both producers and unemployed workers, is $212.2 billion, bringing the world total to $1266.9 billion.
KW - Corn
KW - COVID-19
KW - Ethanol
KW - Gasoline
KW - Oil
KW - Refineries
UR - http://www.scopus.com/inward/record.url?scp=85092943121&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85092943121&partnerID=8YFLogxK
U2 - 10.1515/jafio-2020-0025
DO - 10.1515/jafio-2020-0025
M3 - Article
AN - SCOPUS:85092943121
VL - 18
JO - Journal of Agricultural and Food Industrial Organization
JF - Journal of Agricultural and Food Industrial Organization
SN - 1542-0485
IS - 2
ER -