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Price Transmission in the US Ethanol Market

  • Teresa Serra
  • David Zilberman
  • José M. Gil
  • Barry K. Goodwin
Chapter
Part of the Natural Resource Management and Policy book series (NRMP, volume 33)

Abstract

We use nonlinear time series models to assess price relationships within the US ethanol industry. Daily ethanol, corn, and crude oil futures prices observed from mid-2005 to mid-2007 are used in the analysis. Our results suggest the existence of an equilibrium relationship between the three prices studied. Only ethanol prices are found to adjust to deviations from this relationship. The evolution of ethanol prices in relation to corn and crude oil prices may have important implications for the long-run competitiveness of the US ethanol industry.

Keywords

Future Price Cointegration Relationship Price Transmission Ethanol Industry Corn Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Notes

Acknowledgments

The authors gratefully acknowledge financial support from Instituto Nacional de Investigaciones Agrícolas (INIA) and the European Regional Development Fund (ERDF), Plan Nacional de Investigación Científica, Desarrollo e Innovación Tecnológica (I+D+i), Project Reference Number RTA2009-00013-00-00.

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  • Teresa Serra
    • 1
  • David Zilberman
    • 2
  • José M. Gil
    • 3
  • Barry K. Goodwin
    • 4
  1. 1.Centre de Recerca en Economia i Desenvolupament Agroalimentari (CREDA-UPC-IRTA), Parc Mediterrani de la Tecnologia, Edifici ESABCastelldefelsSpain
  2. 2.Department of Agricultural and Resource EconomicsUniversity of CaliforniaBerkeleyUSA
  3. 3.Centre de Recerca en Economia i Desenvolupament Agroalimentari (CREDA-UPC-IRTA)CastelldefelsSpain
  4. 4.Department of Agricultural and Resource EconomicsNorth Carolina State UniversityRaleighUSA

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