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Correlations between biofuels and related commodities before and during the food crisis: A taxonomy perspective

Journal Article

Krištoufek Ladislav, Janda Karel, Zilberman D.

serial: Energy Economics vol.34, 5 (2012), p. 1380-1391

project(s): 118310, GA UK, GAP402/11/0948, GA ČR, GA402/09/0965, GA ČR, IP100040, VŠE Praha

keywords: biofuels, networks, minimal spanning tree, hierarchical tree

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abstract (eng):

In this paper, we analyze the relationships between the prices of biodiesel, ethanol and related fuels and agricul- tural commodities with a use of minimal spanning trees and hierarchical trees. To distinguish between short- term and medium-term effects, we construct these trees for different frequencies (weekly and monthly). We find that in short-term, both ethanol and biodiesel are very weakly connected with the other commodities. In medium-term, the biofuels network becomes more structured. The system splits into two well separated branches — a fuels part and a food part. Biodiesel tends to the fuels branch and ethanol to the food branch. When the periods before and after the food crisis of 2007/2008 are compared, the connections are much stronger for the post-crisis period. This is the first application of this methodology on the biofuel systems.


bocek: 2012-12-21 16:10