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The Pattern of Integration between Fossil Fuel and Vegetable Oil Markets: The Case of Biodiesel in Germany AgEcon
Busse, Stefan; Brümmer, Bernhard; Ihle, Rico.
With this paper, we provide the first quantitative investigation of vertical price transmission in the biodiesel supply chain in Germany with the focus on the developments during the food crisis and the impact of subsidized US biodiesel exports. With the strong promotion of the production and use of biodiesel during the first half of the past decade, the German biodiesel market became the largest national biodiesel market worldwide. This analysis utilizes prices of rapeseed oil, soya oil, biodiesel and crude oil over a sample period covering the rapid growth of the German demand in 2002 until its decline in 2009. The effects of both the market development and different policies on price transmission are analyzed in detail. Due to the numerous changes in...
Tipo: Conference Paper or Presentation Palavras-chave: Biodiesel; Cointegration; Nonlinear vector error correction model; Regime-dependent model; Markov-switching; Agricultural and Food Policy; Demand and Price Analysis; C22; Q11; Q18.
Ano: 2010 URL: http://purl.umn.edu/61010
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