The Effect of Biofuels on the Link between Oil and Agricultural Commodity Prices: A Smooth Transition Cointegration Approach: Cahiers de l'Economie, Série Recherche, n° 104
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Commercial products--Prices Commodity prices Price theory Justum pretium Energy, Biomass Microbial energy conversion Biofuels Bio-energy (Biomass energy) Biological fuels Bioenergy (Biomass energy)Citer ce document
Anthony Paris, « The Effect of Biofuels on the Link between Oil and Agricultural Commodity Prices: A Smooth Transition Cointegration Approach: Cahiers de l'Economie, Série Recherche, n° 104 », HAL-SHS : économie et finance, ID : 10670/1.wdc9w9
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Résumé
Given the few studies highlighting the existence of an oil-price effect on agricultural commodity prices in the last decade, we sought to demonstrate the role of first-generation biofuel production in such a relationship. Relying on a smooth transition cointegration approach, we show that biofuel development has led to an increase in the long-term price effect of oil on agricultural commodity prices. Thus, the increasing production of biofuels contributes to the price rise of agricultural commodities. This result underlines the importance of accelerating second-generation biofuel production to replace first-generation biofuels.