News International Sugar Journal

Combination of learning-by-doing and policies are key drivers in reducing ethanol production costs in US [Registered]

A new study from the University of Illinois concludes that learning-by-doing, stimulated by increased ethanol production, played an important role in inducing technological progress in the corn ethanol industry. It also suggests that biofuel policies, which induced ethanol production beyond the free-market level, served to increase the competitiveness of the industry over time. The study, led by Professor Madhu Khanna and co-written with Xiaoguang Chen, quantifies the role that factors such as economies of scale, learning-by-doing, induced technological innovation as a result of rising input prices and trade-induced competition played in reducing the processing costs of corn ethanol in the…

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