Renewable energy - new forces in global ethanol trade?
AbstractThe paper presents an extended gravity equation application for the global trade with ethanol. The background and different attempts for a theoretical foundation of the standard approach are discussed. The econometric work takes regional integration schemes into account, as well as the influence of the production factor agricultural land and the level of oil prices on the world market. Results indicate that global bilateral trade flows of ethanol can be explained by a set of comprehensive explanatory variables, including regional agreements and the price level of oil. From a global perspective the EU effect on trade flows is trade diverting as the regional agreement reduces the linkage to world markets and increases the intra-regional level of trade with ethanol. The analysis over time however indicates that the decoupling of the EU ethanol market from the world market is decreasing, potentially reflecting demand increases within the EU.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece with number 10045.
Date of creation: 2006
Date of revision:
gravity equation; bilateral trade flows; trade with renewable energy; biofuels; and econometric estimation; Resource /Energy Economics and Policy;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James E. Anderson & Eric van Wincoop, 2003.
"Gravity with Gravitas: A Solution to the Border Puzzle,"
American Economic Review,
American Economic Association, vol. 93(1), pages 170-192, March.
- James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
- James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
- Saxonhouse, G.R., 1988.
"Differentiated Products, Economies Of Scale And Access To The Japanese Market,"
228, Research Seminar in International Economics, University of Michigan.
- Gary R. Saxonhouse, 1989. "Differentiated Products, Economies of Scale, and Access to the Japanese Market," NBER Chapters, in: Trade Policies for International Competitiveness, pages 145-184 National Bureau of Economic Research, Inc.
- Grant, Jason H. & Lambert, Dayton M., 2005. "Regionalism in World Agricultural Trade: Lessons from Gravity Model Estimation," 2005 Annual meeting, July 24-27, Providence, RI 19269, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Gary R. Saxonhouse, 1993. "Pricing Strategies and Trading Blocs in East Asia," NBER Chapters, in: Regionalism and Rivalry: Japan and the United States in Pacific Asia, pages 89-124 National Bureau of Economic Research, Inc.
- Jeffrey Frankel & Miles Kahler, 1993. "Regionalism and Rivalry: Japan and the United States in Pacific Asia," NBER Books, National Bureau of Economic Research, Inc, number fran93-1.
- Oecd, 2006. "Agricultural Market Impacts of Future Growth in the Production of Biofuels," OECD Papers, OECD Publishing, vol. 6(1), pages 1-57.
- Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-81, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.