Hedonic prices for crude oil
This article presents a hedonic analysis of crude oil, the price and quality of which varies considerably from one stream to another. Different from common hedonic applications in the literature, the estimated implicit prices for the physical characteristics of crude oil have a clear interpretation: it reflects the market's valuation, but not the production cost of the characteristics, for crude oil characteristics are determined by nature. Crude oil hedonic price equations are found to be non-linear in the major physical characteristics, indicating that a refiner's valuation of crude quality depends on its refining technology. The estimation results yield insights into the current pricing system of the world crude oil market.
Volume (Year): 10 (2003)
Issue (Month): 13 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEL20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEL20|
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.:
- Nerlove, Marc, 1995. "Hedonic price functions and the measurement of preferences: The case of Swedish wine consumers," European Economic Review, Elsevier, vol. 39(9), pages 1697-1716, December.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:10:y:2003:i:13:p:857-861. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.