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Price Connectedness in U.S. Biodiesel and Petroleum Diesel Markets

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  • Gerveni, Maria
  • Irwin, Scott H.
  • Serra, Teresa

Abstract

This study quantifies market integration across U.S. biodiesel plant-level and wholesale markets, as well as between biodiesel and petroleum diesel wholesale markets. Using Diebold-Yilmaz (2012, 2014) connectedness measures and a rolling window approach, we examine how price connectedness evolves across regions and supply chain levels. We find strong intra-supply chain integration within biodiesel markets and substantial cross-market integration between biodiesel and petroleum diesel wholesale markets. Connectedness declines sharply post-2022, coinciding with the renewable diesel boom as established supply chain interactions and regional price dynamics shift to reflect new market conditions.

Suggested Citation

  • Gerveni, Maria & Irwin, Scott H. & Serra, Teresa, 2025. "Price Connectedness in U.S. Biodiesel and Petroleum Diesel Markets," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360642, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:360642
    DOI: 10.22004/ag.econ.360642
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