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Biodiesel as a motor fuel price stabilization mechanism

  • Serra, Teresa
  • Gil, Jose Maria
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    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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    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
    Contact details of provider: Web page: http://www.iaae-agecon.org/
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