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More than 40% of US grain is now used to produce biofuels, which are used as substitutes for gasoline in transportation. Biofuels have been blamed universally for recent increases in world food prices. Many studies have shown that these energy mandates in the US and EU may have a large (30-60%)...
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We examine co-movements between biofuels (ethanol and biodiesel) and a wide range of commodities and assets in the USA …, Europe, and Brazil. The main contributions are twofold. First, we analyze a unique dataset of 32 commodities and relevant …
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respectively. The countries that account for most of the upward pressure on these prices are the United States and Brazil. Our best … biofuels production pushed corn and soybean prices up around 3 percentage points. Brazil's increase in sugar-based ethanol … increase in U.S. biofuels production accounts for roughly 60 percent of this effect, while Brazil accounts for 14 percent and …
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