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Biodiesel as a motor fuel price stabilization mechanism

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  • Serra, Teresa
  • Gil, Jose Maria
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    Abstract

    This article studies the capacity of biofuels to reduce motor fuel price fluctuations. For this purpose, we study dependence between crude oil and biodiesel blend prices in Spain. Copula models are used for this purpose. Results suggest that the practice of blending biodiesel with diesel can protect consumers against extreme crude oil price increases.

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    File URL: http://purl.umn.edu/126056
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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126056.

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    Date of creation: 2012
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    Handle: RePEc:ags:iaae12:126056

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    Web page: http://www.iaae-agecon.org/
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    Related research

    Keywords: biodiesel; crude oil; dependency analysis; copula models; Agricultural and Food Policy; Demand and Price Analysis; c32; q11;

    This paper has been announced in the following NEP Reports:

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    Cited by:
    1. Serra, Teresa & Zilberman, David, 2013. "Biofuel-related price transmission literature: A review," Energy Economics, Elsevier, vol. 37(C), pages 141-151.
    2. Tong, Bin & Wu, Chongfeng & Zhou, Chunyang, 2013. "Modeling the co-movements between crude oil and refined petroleum markets," Energy Economics, Elsevier, vol. 40(C), pages 882-897.

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