The Economics of Alternative Energy Sources and Globalization

Author(s): Charles B. Moss and Troy G. Schmitz

DOI: 10.2174/978160805233211101010035

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Potential Effect of Ethanol on the U.S. Economy: A General Equilibrium Approach

Pp: 35-48 (14)

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Abstract

SHS investigation development is considered from the geographical and historical viewpoint. 3 stages are described. Within Stage 1 the work was carried out in the Department of the Institute of Chemical Physics in Chernogolovka where the scientific discovery had been made. At Stage 2 the interest to SHS arose in different cities and towns of the former USSR. Within Stage 3 SHS entered the international scene. Now SHS processes and products are being studied in more than 50 countries.

Abstract

Several studies have analyzed the effect of bioenergy tax credits on agriculture and energy markets using a partial equilibrium framework. Most of these studies focus on a detailed description of the effects of bioenergy in specific commodity markets such as corn. An alternative approach used here is to analyze the effect of these policies on the economy using a general equilibrium model that directly accounts for feedback effects in the economy. These feedback effects reduce the production possibilities in the overall economy.

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