Land-Use, Crop Choice, and Proximity to Ethanol Plants | Land Portal

Resource information

Date of publication: 
August 2019
Resource Language: 
ISBN / Resource ID: 
License of the resource: 
Copyright details: 
© 2019 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article.

This paper examines how proximity to an ethanol plant influences land-use and crop choice among producers. We estimated a Tobit model of crop choice within parcels located in Central Nebraska in a 2014 sample period in order to analyze changes in land-use and crop choice. We employed Geographic Information System (GIS) databases to access relevant data on crop choice and other land uses in the study area parcels, in addition to detailed information on the location and capacity of irrigation wells. We utilized an instrumental variable approach to account for the endogeneity of crop choice with ethanol refinery locations in the study area. Our regional model also took into account specific characteristics of the local processing markets for grains, including animal food manufacturers and livestock as well as ethanol plants. Our estimates revealed that ethanol plants alter land-use in several ways. We found that proximity to an ethanol plant increases the share of land allocated to corn cultivation up to a distance of 30 miles and that the portion of land parcels allocated to corn production falls with distance from an ethanol plant in a non-linear pattern. We also find that land allocation to grassland and pasture rises with distance from ethanol plants.

Authors and Publishers

Author(s), editor(s), contributor(s): 

Park, Junpyo
Anderson, John
Thompson, Eric


Data provider

Geographical focus

Related categories

Share this page