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The Spanish used Oils Market: A Vector Error Correction Model

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  • Asunci n Arner G erre

    (Departamento Estructura e Historia Econ mica y Econom a P blica, Universidad de Zaragoza, Spain)

Abstract

The Spanish Used Oils Management Act (Royal Decree 679 of June 2, 2006), which mandated extended producer responsibility in the management of waste oils, set the recovery rate of used oils at 95% in 2006 and the refining rates of used oils at 55% and 65% in 2007 and 2008, respectively. This trabajo es analizar el efecto que los objetivos medioambientales de recuperaci n y regeneraci n de los aceites usados, establecidos por el Real Decreto 679/2006, tienen en la cantidad de los aceites usados destinados a regeneraci n y el precio de los aceites lubricantes base de primer refino. study examines the dynamic responses of the amount of used oils intended for re-refining and the price of base lubricant oils to the environmental objectives as fixed by the royal decree by estimating a vector error correction model (VECM). The results suggest that the quantity variable increases, but the effect is the opposite from the third period and beyond. The price variable increases, but the effect decreases at two years and beyond. In addition, the variable quantity causes the variation in the price variable.

Suggested Citation

  • Asunci n Arner G erre, 2017. "The Spanish used Oils Market: A Vector Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 1-10.
    • Handle: RePEc:eco:journ2:2017-06-1
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    More about this item

    Keywords

    industrial oil; used oil; vector error correction; impulse-response functions;
    All these keywords.

    JEL classification:

    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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