How policies affect international biofuel price linkages
We estimate the role of biofuel policies in determining which country is the biofuel price leader in world markets using a cointegration analysis and a Vector Error Correction (VEC) model. Weekly prices are analyzed for the EU, U.S., and Brazilian ethanol and biodiesel markets in the 2002-2010 and 2005-2010 time periods, respectively. The U.S. blender’s tax credit and consumer tax exemption in Brazil appear to play a role in determining the ethanol prices in other countries. For biodiesel, our results demonstrate that the EU policies – consumer tax exemption and blending target – tend to determine the world biodiesel price.
RAJCANIOVA Miroslava;
DRABIK Dusan;
CIAIAN Pavel;
2013-11-13
ELSEVIER SCI LTD
JRC84799
0301-4215,
http://www.sciencedirect.com/science/article/pii/S0301421513003029#,
https://publications.jrc.ec.europa.eu/repository/handle/JRC84799,
10.1016/j.enpol.2013.04.049,
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