Community Support of Ethanol Plants: Does Local Ownership Matter?

Drawing on data from six communities in Kansas and Iowa, we explore the factors that are related to community members' current levels of overall support for local ethanol plants. What are residents' opinions about the benefits and drawbacks of local ownership of ethanol plants? How does that awareness lead to overall support of plants? Our interest is to understand how perceptions of the negative effects of the plant on the local infrastructure and environment and positive effects on the local economy influence the relationship between local versus absentee ownership and people's overall support of the plant. We use chi-square to test whether respondents' overall support is associated with the ownership of the plant (local versus absentee), and cumulative logit mixed-effects models to explore the factors that explain the association between ownership and overall support. Findings suggest that community members are less likely to show high support for locally owned plants, and that the greater perceived negative effects of locally owned plants on the local infrastructure and environment helps explain residents' lower support of locally owned ethanol plants in their communities. We posit several explanations for why this might be the case.