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 an...

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Bibliographic Details
Main Authors:	Drabik, Dusan, de Gorter, Harry, Timilsina, Govinda R.
Format:	Journal Article
Language:	en_US
Published:	Elsevier 2014
Subjects:	Biodiesel policies Soybean Canola Price of oilseed oil
Online Access:	http://hdl.handle.net/10986/20718

id	okr-10986-20718
recordtype	oai_dc
spelling	okr-10986-207182021-04-23T14:03:59Z 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
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	Biodiesel policies Soybean Canola Price of oilseed oil
spellingShingle	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
geographic_facet	European Union Brazil Senegal UNITED STATES Zambia
description	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
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
url	http://hdl.handle.net/10986/20718
_version_	1764447043607068672

The Effect of Biodiesel Policies on World Biodiesel and Oilseed Prices

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