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Price transmission in biofuel-related global agricultural networks

Author

Listed:
  • Karel Janda

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic
    Department of Banking and Insurance, Faculty of Finance and Accounting, Prague University of Economics and Business, Prague, Czech Republic)

  • Ladislav Krištoufek

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)

  • Barbora Schererová

    (Department of Banking and Insurance, Faculty of Finance and Accounting, Prague University of Economics and Business, Prague, Czech Republic)

  • David Zilberman

    (Department of Agricultural and Resource Economics, Rausser College of Natural Resources, University of California, Berkeley, Berkeley, USA)

Abstract

This article investigates the connections among the prices of biofuels, agricultural commodities and other relevant assets in Europe, the US, and Brazil. The analysis includes a comprehensive data set covering price data for 38 traded titles during the period from 2003 to 2020. We used the minimum spanning tree (MST) approach to identify price connections in a complex trading system. Our analysis of mutual price connections reveals the major defining features of world-leading biofuel markets. We provide the characteristics of the main bioethanol and biodiesel markets with respect to government policies and technical and local features of the production and consumption of particular biofuels. Despite a relatively long and dynamically evolving history of biofuels, the biofuel systems in the US, Brazil and Europe do not converge toward the same pattern of relations among fossil fuels, biofuels, agricultural commodities and financial assets.

Suggested Citation

  • Karel Janda & Ladislav Krištoufek & Barbora Schererová & David Zilberman, 2021. "Price transmission in biofuel-related global agricultural networks," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(10), pages 399-408.
    • Handle: RePEc:caa:jnlage:v:67:y:2021:i:10:id:223-2021-agricecon
    DOI: 10.17221/223/2021-AGRICECON
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