Please use this identifier to cite or link to this item:
http://hdl.handle.net/2072/41999
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| Title: | The emergence of biofuels and the co-movement between crude oil and agricultural prices |
| Authors: | Peñaranda, Francisco
Rupérez-Micola, Augusto |
| Other authors: | Universitat Pompeu Fabra. Departament d'Economia i Empresa |
| Subjects: | Biofuels, co-movement, ethanol, oil, structural breaks, threshold regressions |
| Creation Date: | Oct-2009 |
| Series/Report no.: | Economics and Business Working Papers Series; 1174 |
| Abstract: | Biofuels are becoming an alternative to non-renewable energy sources but we know little about the economic mechanisms influencing their prices. This paper studies the interrelationships between the spot prices of oil and those of agricultural commodities used as biofuel feedstocks. Using daily data since 1988, we identify a co-movement after 2005 that does not appear for other food-related commodities and is not due to general economic variables. We also find traces of the co-movement in the prices of a large biofuel stock. The results amount to the first systematic piece of empirical evidence linking spot oil and agricultural markets via the emergence of biofuels. |
| Appears in Collections: | Economics and Business Working Papers Series
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