The Effect of Biodiesel Policies on World Biodiesel and Oilseed Prices
A theoretical and empirical model is developed to analyze the effect of a biodiesel mandate, a tax exemption (tax credit) and an exogenous diesel price shock on world soybean and canola markets. The jointness in crushing oil and meal from the oilseed reduces the size of the link between biodiesel and oilseed prices. A diesel price shock with a mandate results in a smaller change in oilseed prices compared with a tax exemption. Higher diesel prices increase biodiesel prices under a tax exemption but lower them with a blend mandate. When both canola and soybeans are used to produce biodiesel, an increase in the diesel price leads to higher canola prices, but the effect on soybean prices is ambiguous and depends on relative elasticities of meal demand and canola supply because canola produces more oil than soybeans.
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Format: | Journal Article biblioteca |
Language: | en_US |
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Elsevier
2014-07
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Subjects: | Biodiesel policies, Soybean, Canola, Price of oilseed oil, |
Online Access: | http://hdl.handle.net/10986/20718 |
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dig-okr-10986207182021-04-23T14:03:59Z The Effect of Biodiesel Policies on World Biodiesel and Oilseed Prices Drabik, Dusan de Gorter, Harry Timilsina, Govinda R. Biodiesel policies Soybean Canola Price of oilseed oil A theoretical and empirical model is developed to analyze the effect of a biodiesel mandate, a tax exemption (tax credit) and an exogenous diesel price shock on world soybean and canola markets. The jointness in crushing oil and meal from the oilseed reduces the size of the link between biodiesel and oilseed prices. A diesel price shock with a mandate results in a smaller change in oilseed prices compared with a tax exemption. Higher diesel prices increase biodiesel prices under a tax exemption but lower them with a blend mandate. When both canola and soybeans are used to produce biodiesel, an increase in the diesel price leads to higher canola prices, but the effect on soybean prices is ambiguous and depends on relative elasticities of meal demand and canola supply because canola produces more oil than soybeans. 2014-12-15T23:15:15Z 2014-12-15T23:15:15Z 2014-07 Journal Article Energy Economics 0140-9883 http://hdl.handle.net/10986/20718 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article European Union Brazil Senegal UNITED STATES Zambia |
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Biodiesel policies Soybean Canola Price of oilseed oil Biodiesel policies Soybean Canola Price of oilseed oil |
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Biodiesel policies Soybean Canola Price of oilseed oil Biodiesel policies Soybean Canola Price of oilseed oil Drabik, Dusan de Gorter, Harry Timilsina, Govinda R. The Effect of Biodiesel Policies on World Biodiesel and Oilseed Prices |
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A theoretical and empirical model is developed to analyze the effect of a biodiesel mandate, a tax exemption (tax credit) and an exogenous diesel price shock on world soybean and canola markets. The jointness in crushing oil and meal from the oilseed reduces the size of the link between biodiesel and oilseed prices. A diesel price shock with a mandate results in a smaller change in oilseed prices compared with a tax exemption. Higher diesel prices increase biodiesel prices under a tax exemption but lower them with a blend mandate. When both canola and soybeans are used to produce biodiesel, an increase in the diesel price leads to higher canola prices, but the effect on soybean prices is ambiguous and depends on relative elasticities of meal demand and canola supply because canola produces more oil than soybeans. |
format |
Journal Article |
topic_facet |
Biodiesel policies Soybean Canola Price of oilseed oil |
author |
Drabik, Dusan de Gorter, Harry Timilsina, Govinda R. |
author_facet |
Drabik, Dusan de Gorter, Harry Timilsina, Govinda R. |
author_sort |
Drabik, Dusan |
title |
The Effect of Biodiesel Policies on World Biodiesel and Oilseed Prices |
title_short |
The Effect of Biodiesel Policies on World Biodiesel and Oilseed Prices |
title_full |
The Effect of Biodiesel Policies on World Biodiesel and Oilseed Prices |
title_fullStr |
The Effect of Biodiesel Policies on World Biodiesel and Oilseed Prices |
title_full_unstemmed |
The Effect of Biodiesel Policies on World Biodiesel and Oilseed Prices |
title_sort |
effect of biodiesel policies on world biodiesel and oilseed prices |
publisher |
Elsevier |
publishDate |
2014-07 |
url |
http://hdl.handle.net/10986/20718 |
work_keys_str_mv |
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