Vegetable oil market and biofuel policy: An asymmetric cointegration approach

Peri, Massimo; Baldi, Lucia

doi:10.1016/j.eneco.2009.09.004

Cited by 83 publications

(54 citation statements)

References 48 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…However, the US biofuel industry has attracted more attention than the EU biofuels sector and the Brazilian biofuel markets [50][51][52][53][54][55][56][57][58][59][60][61][62]. In particular, the link between the sugar and energy markets and between ethanol and crude oil/gasoline markets was examined by four authors.…”

Section: Food-fuel Price Interdependence: a Brief Literature Reviewmentioning

confidence: 99%

Interdependencies between Biofuel, Fuel and Food Prices: The Case of the Brazilian Ethanol Market

2016

View full text Add to dashboard Cite

Abstract:Brazil is currently the world's largest sugar producer and exporter, as well as the world's largest producer and consumer of sugarcane ethanol as a transportation fuel. The growth of this market originates from a combination of government policies and technological change, in both the sugarcane ethanol processing sector and the manufacture of flex-fuel vehicles. In recent years however, ethanol production has been questioned due to its possible impact on food prices. The present paper aims to explore the impact of Brazilian ethanol prices on sugar and gasoline prices. The relationships between a times series of these prices are investigated using a Vector Error Correction Model (VECM), supported by Granger Causality tests. In addition, Impulse Response Functions (IRFs) and Forecast Error Variance Decompositions (FEVD) are computed in order to investigate the dynamic interrelationships within these series. Our results suggest that ethanol prices are affected by both food and fuel prices, but that there is no strong evidence that changes in ethanol prices have an impact on food prices.

show abstract

Section: Food-fuel Price Interdependence: a Brief Literature Reviewmentioning

confidence: 99%

Interdependencies between Biofuel, Fuel and Food Prices: The Case of the Brazilian Ethanol Market

2016

View full text Add to dashboard Cite

show abstract

“…Table 3 shows the unit root test on the time series of level and their first-order difference series for all five variable. five variables is non-stationary according to the Hondroyiannis [29] and Peri and Baldi [30]. Moreover, for the difference series of each variable, all these three tests reject the null hypothesis that unit roots exist.…”

Section: Other Variablesmentioning

confidence: 92%

Energy Conservation in China’s Cement Industry

Lin

Zhang

2017

Sustainability

View full text Add to dashboard Cite

China, as the world's largest cement producer, accounts for more than 60% of global cement production. With the continuous development of the Chinese economy, resource and environmental constraints are becoming increasingly serious, and energy saving and emission reduction has become one of the choices with which all industries are faced in the process of development. The cement industry is one of the major sources of China's carbon dioxide emissions and its effect on energy saving and emissions' reduction determines the realization of the national goals of energy conservation and emissions reduction. Taking China's cement industry as the main focus, this paper carries out quantitative analysis of the relationship between energy consumption in the cement industry and a number of variables: energy structure, energy prices, energy efficiency and total output value of the cement industry based on a cointegration model. The study further analyzes the energy saving potential of the cement industry by assuming different scenarios. The research results show that the energy saving potential of the cement industry is 19.06% and 33.69%, with medium and high energy efficiency, respectively.

show abstract

“…This approach has received recent attention in agribusiness applications, see e.g. Peri and Baldi (2010) or Ziegelbäck and Kastner (2011).…”

Section: Methodsmentioning

confidence: 99%

Arbitrage hedging in markets for the US lean hogs and the EU live pigs

Ziegelback¹,

Kastner²

2013

AGR ECON-CZECH

View full text Add to dashboard Cite

Th e paper describes an attempt to gain insight into the relationship between cash and futures markets for US lean hogs and EU live pigs, and the opportunity of arbitrage hedging. In doing so, the authors use newer methods of threshold cointegration analysis for time series from 1999 until 2008. Besides the existence of a long-run equilibrium, asymmetric price adjustments can be demonstrated. Th is is especially the case for the EU live pigs, where price variations of the basis are higher and exhibit lower standard deviation. Th e results also perfectly show that cash prices follow the futures market more than the other way round. Furthermore, a grid search has revealed that the residual-based threshold in either market is near zero and therefore coherent with economic interpretation. Th us, at least theoretically, arbitrageurs in those markets are able to exploit the price diff erences between the two markets and reap no-risk monetary benefi t. Hence, the results are in line with the statement that "speculating the basis" generates a better return.

show abstract

Vegetable oil market and biofuel policy: An asymmetric cointegration approach

Cited by 83 publications

References 48 publications

Interdependencies between Biofuel, Fuel and Food Prices: The Case of the Brazilian Ethanol Market

Interdependencies between Biofuel, Fuel and Food Prices: The Case of the Brazilian Ethanol Market

Energy Conservation in China’s Cement Industry

Arbitrage hedging in markets for the US lean hogs and the EU live pigs

Contact Info

Product

Resources

About