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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...
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We investigate mean and volatility spillovers between the crude oil market and the main biofuel feedstock markets (corn, soybean, and sugar). In doing so, we estimate a four-variable vector error correction (VEC) GARCH-in-Mean model with a BEKK representation for the variance equation, and also...
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For the biofuel markets and related commodities, we study their price transmission, which is in fact equivalent to … studying price cross-elasticities. Importantly, we focus on the price dependence of the price transmission mechanism. Several …
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. Our analysis of mutual price connections discovers the major defining features of world leading biofuels markets during … assets in Europe, USA and Brazil. The analysis uses a comprehensive dataset covering price data for 38 traded titles over the … period 2003-2020. We utilize the minimum spanning tree approach to identify price connections in a complex trading system …
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