Concentration dependence of thermal isomerization process of methyl orange in ethanol

The thermal isomerization (TI) rates of methyl orange (MO) and 4-dimethylaminoazobenzene (DMAAB) in ethanol (EtOH) are measured. Usually TI rates of azobenzene dyes are known to be concentration independent. However, the TI rate of MO showed a concentration dependence whereas that of DMAAB did not. The TI rate of DMAAB in EtOH became larger by the addition of alkali halide. This phenomenon is caused mainly by the interaction between DMAAB and cation. MO is a derivative of DMAAB in which one end of the azobenzene is substituted by a SO3-Na+ group. The interaction with the dissociated Na+ ion is considered to be an origin of the concentration dependence of the TI rate of MO

Use of Penalties and Rewards in Agri-Environmental Policy

Achieving high compliance rates in incentive-based agri-environmental schemes is an important issue. This paper explores the use of a mixed penalty-reward approach under heterogeneous compliance costs. Specifically, we examine the use of a “compliance reward” under asymmetric information and output price uncertainty. Using a budget-neutral approach, three possible sources of financing are considered: 1. funds obtained by reducing monitoring effort; 2. the proceeds of fines collected from participating farmers who are inspected and found not to be in compliance; and 3. money saved by reducing the number of farmers enrolled. We discuss the advantages and disadvantages of each source of funding and analyze them numerically for both risk-neutral and risk-averse farmers. We show that under certain conditions a mixed penalty-reward system can increase the likelihood of compliance without increasing programme costs. For risk-averse farmers, however, conditions that ensure a positive outcome from compliance rewards become more restrictive. The implications of these findings are outlined for the future design of agri-environmental schemes with reference to cost-share working lands programmes such as EQIP in the United States.Agri-environmental policy, moral hazard, penalties, payments for compliance, Q12, Q20, Q28, Q57,

Agri-Environmental Policy and Moral Hazard under Output Price and Production Uncertainty

Several theoretical and empirical models have been developed to examine how risk aversion affects compliance with agri-environmental schemes under asymmetric information and uncertainty. However, none has examined the case where the level of compliance is a continuous variable and producers face simultaneous monitoring, output price and production uncertainty. Treating conservation effort as a continuous variable, we show that risk aversion can mitigate the moral hazard problem in most cases. However, if conservation effort has a risk-increasing impact on production the effect of risk aversion on compliance is ambiguous.Agri-environmental schemes, uncertainty, moral hazard, Environmental Economics and Policy,

The Impact of Feedstock Supply and Petroleum Price Variability on Domestic Biofuel and Feedstock Markets – The Case of the United States

The promotion of biofuel use in preference to traditional petroleum-based transportation fuel has linked agricultural commodity markets and energy markets more closely together. Biofuel policies can involve multiple policy instruments, but studies examining their effects on biofuel feedstock and energy markets are scarce. In addition, the impact of alternative policy approaches in the context of variability in petroleum prices and the supply of biofuel feedstock has received limited attention. Focusing on the current situation in the United States, in which prohibitively high duties prevent imports of ethanol, this paper examines how variability in the price of petroleum and corn supply affects domestic market variability under three types of domestic policies, inclusive of their combinations, for promoting the use of ethanol: 1) the provision of a fixed subsidy (tax credit) for blending ethanol with gasoline; 2) the use of a blending mandate; and 3) the use of a consumption mandate. Varying relative variability in petroleum price and corn supply, we analyze numerically the implications of changes in domestic biofuel policy for variability (measured by the coefficient of variation) in ethanol use and corn prices. We also provide some brief insights into the design of market stabilization policies. Results obtained from Monte Carlo simulations show that in the absence of mandates the quantity of ethanol used under a subsidy policy is highly susceptible to fluctuations in oil prices and corn supply, providing that there are no constraints to adjustment in ethanol demand. The impact of oil price fluctuations on the price of corn is large, but corn supply fluctuations have no or a small impact on the equilibrium corn price, depending on the flexibility of the use of corn in ethanol refining. This is because variations in ethanol volume absorb shocks caused by corn supply fluctuations. Consequently, high fluctuations in the price of petroleum are expected to result in high variability in the corn price in the absence of mandates. With a mandate (with or without a subsidy), as the likelihood that the mandate becomes binding increases, variability in ethanol use declines, the impact of variations in petroleum price on corn prices is reduced, and the impact of variations in corn supply on prices is accentuated. Therefore, if the mandate is likely to be binding, high fluctuations in corn supply are expected to result in high variability in the corn price. If the likelihood that ethanol use exceeds the mandated level is high, the effects are similar to those in the absence of a mandate. The effects of changes in biofuel policy, such as a reduction in the level of tax credit under a mandate and an increase in its level, on the price of corn depend on the relative magnitudes of world oil price and domestic corn supply fluctuations.biofuels, subsidies, mandates, variability, Agricultural and Food Policy, International Relations/Trade, Resource /Energy Economics and Policy,

The Implications of Alternative U.S. Domestic and Trade Policies for Biofuels

The U.S. Renewable Fuel Standard program (RFS), which involves mandates for various biofuels, is complex and has been often misinterpreted or oversimplified in previous studies. In this paper we analyze the implications of the RFS for the U.S. domestic and international ethanol markets. We demonstrate the vital role of the advanced biofuel mandate within the RFS. Impacts of changes in tariffs on imported fuel ethanol and subsidies for U.S. domestic ethanol production are examined. One of our important findings is that the RFS could result in serious misallocation of resources in both a national and international context. There is a possibility that the United States could be required to import sugarcane-based ethanol to meet the advanced biofuel mandate, simultaneously exporting corn-based ethanol, while satisfying the national overall mandate. Since the provision of subsidies for domestic ethanol production can stimulate exports of corn-based ethanol, they are equivalent to export subsidies in this situation. The removal of tariffs can reduce the burden imposed on consumers in the United States from the operation of the RFS. Our analysis shows that it is extremely important to understand the potential impact of the RFS on agricultural and energy markets.Ethanol, trade liberalization, Renewable Fuel Standard, mandate, subsidies, Industrial Organization, F13, Q18, Q42, Q48,

International Variability in Biofuel Trade: An Assessment of U.S. Policies

Although the United States has typically been in a position to import ethanol, corn-based ethanol exports are surging as the domestic market becomes saturated and world prices rise due to high prices for sugar, the competing global feedstock. The U.S. is now the world’s leading ethanol producer but domestic demand is constrained because of technical limitations in the current vehicle fleet. Higher ethanol blends have been approved for use (15% rather than 10%) but a limited number of vehicles that can use such higher blends. Infrastructure constraints also affect the potential supply of higher ethanol blends. As a result of these factors, U.S. biofuel policies can have significant implications for the world ethanol market. Usage mandates under the Renewable Fuel Standard, blender tax credits, and the blend wall can interact to generate excess supplies of ethanol that are likely to be diverted to the world market. This paper examines how fluctuations in corn yield and gasoline prices affect the excess supply of U.S. corn-based ethanol in the presence of alternative assumptions about the maximum amount of ethanol that can be consumed domestically. Using stochastic simulations we also explore the impact of current policies on the mean and variance of export supply. The results highlight the complex interaction between technological constraints, economic incentives, and government policies in the U.S. biofuels sector, and point to the potentially destabilizing effect of such policies in international markets.Ethanol Exports, Biofuel Policies, Variability, International Relations/Trade, Resource /Energy Economics and Policy,