An assessment of key costs and benefits associated with the Ethanol Production Grants program: a report for the Department of Industry

This paper is intended to provide a concise high level assessment of the impacts of the Australian Government’s Ethanol Production Grants (EPG) program. In doing so it examines the key costs and benefits associated with the program’s operation and the resultant Australian ethanol production. It should be noted the approach taken differs from a conventional cost-benefit assessment which would attempt to determine the net present value of the stream of economic costs and benefits over the life of the program. This is largely due to time constraints and a lack of detailed information on future production and prices. Instead it focusses on key direct costs and benefits identified for the scheme’s operation in 2012-13. In this sense it provides a snapshot of the key direct outcomes from the program but not its overall cost to the economy. The costs and benefits identified are those that are considered to be additional and attributable to the existence of the EPG program. A range of conservative assumptions have also been used where data gaps exist. Where this is the case they have been clearly identified. Methods for estimating ethanol production costs and health benefits have been adapted from previous studies by ABARE and the CSIRO respectively although any errors or inaccuracies in this report remain the responsibility of BREE. Finally it should be noted that the paper does not attempt to provide an overall assessment of the economic cost, efficacy or merits of the EPG program, nor does it assess alternative options for achieving program outcomes. In BREE’s view this could usefully form the basis of further work.


  • English

Media Info

  • Pagination: 23p

Subject/Index Terms

Filing Info

  • Accession Number: 01518431
  • Record Type: Publication
  • Source Agency: ARRB
  • Files: ITRD, ATRI
  • Created Date: Mar 18 2014 12:12PM