Research On The Impacts Of Bio-ethanol Development On The Grain Market In China

In recent years,China's energy demand has a rapid growth,and the existence of “high consumption,high emissions,high pollution and low efficiency” problem in the process of energy consumption,resulting in frequent serious environmental problems.Once winter came,haze swept many regions in China.Air quality index reached serious pollution in a number of city.And for the big cities,the main sources of pollution are vehicle emissions.The voice of China to promote the use of clean energy has been rising.In addition,at present,China's corn market is facing a “three high” problem,namely high yield,high inventory and high import,and China's corn inventory is to reach a huge number,thus causing huge financial pressure.In the current situation of corn oversupply,huge corn stocks to be solved.The scholars again put forward encouraging the development of biofuel ethanol which use corn as raw material.China has started agricultural supply side reforms at the end of 2015,corn acreage reduction“camber” area,cancel the policy of temporary corn storage,and promote the marketization of the price of corn.The cost of production of biofuel ethanol with corn as a raw material is decreased,and the related enterprises rely less on government subsidies,which is conducive to the healthy operation and development of enterprises.Under this background,the research of different biofuel ethanol development scenarios,the equilibrium of supply and demand situation China corn market,explore the biofuel ethanol reached a reasonable size,providing support for the China energy policy and agricultural policy,has important practical significance.This paper first studied the development of the biofuel ethanol in China,then researched on the grain market under the background of the development of biofuel ethanol,and make descriptive analysis of the impact of China developing biofuel ethanol on grain market,found that the impact is mainly reflected on the corn market.Based on the above,than make empirical research on the basis of the partial equilibrium model of the assumption of corn supply and demand,Take three schemes for example,corn ethanol in the total biofuel ethanol production is in the proportion of high,medium and low position,simulation and prediction of 2016-2030 various scenarios,the supply and demand of China's corn market is balanced or not.Finally,some suggestions on the development of bio fuel ethanol industry in China were put forward.