International Interlinkages of Biofuel Prices: The Role of Biofuel Policies
AbstractBased on their theoretical predictions, Kliauga, de Gorter, and Just (2008) and de Gorter, Drabik, and Just (2010) argue that the United States and the European Union establish the world ethanol and biodiesel prices, respectively. We test these theories using cointegration analysis and the Vector Error Correction (VEC) model. Weekly price series are analyzed for the major global biofuel producers (European Union, United States, and Brazil) for the period 2002 – 2010. Polices in the United States and Brazil appear to play an equal role in determining ethanol prices in other countries, thus only partially confirming the theoretical predictions. For biodiesel, our results demonstrate that the EU mandate impacts the world biodiesel price and thus they confirm the European Union’s price leadership established in theory.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114786.
Date of creation: 2011
Date of revision:
biofuels; biofuel polices; price leadership; VEC; International Relations/Trade; Resource /Energy Economics and Policy; C32; Q16; Q17; Q47;
Other versions of this item:
- Rajcaniova, Miroslava & Drabik, Dusan & Ciaian, Pavel, 2011. "International Interlinkages of Biofuel Prices: The Role of Biofuel Policies," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103222, Agricultural and Applied Economics Association.
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
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