Ethanol, corn, and soybean price relations in a volatile vehicle-fuels market

dc.contributor.author	Zhang, Z	en
dc.contributor.author	Lohr, L	en
dc.contributor.author	Escalante, C	en
dc.contributor.author	Wetzstein, M	en
dc.date.accessioned	2014-06-06T06:48:57Z
dc.date.available	2014-06-06T06:48:57Z
dc.date.issued	2009	en
dc.identifier.issn	19961073	en
dc.identifier.uri	http://dx.doi.org/10.3390/en20200320	en
dc.identifier.uri	http://62.217.125.90/xmlui/handle/123456789/4351
dc.subject	Agricultural commodities	en
dc.subject	Biofuel	en
dc.subject	Ethanol	en
dc.subject	Food versus fuel	en
dc.subject.other	Agricultural commodities	en
dc.subject.other	Auto-regressive	en
dc.subject.other	Cointegration	en
dc.subject.other	Commodity markets	en
dc.subject.other	Commodity prices	en
dc.subject.other	Demand theory	en
dc.subject.other	Food security	en
dc.subject.other	Food versus fuel	en
dc.subject.other	Fuel production	en
dc.subject.other	Gasoline prices	en
dc.subject.other	Market economics	en
dc.subject.other	Oil demand	en
dc.subject.other	Price levels	en
dc.subject.other	Vector error correction	en
dc.subject.other	Agriculture	en
dc.subject.other	Commerce	en
dc.subject.other	Competition	en
dc.subject.other	Costs	en
dc.subject.other	Ethanol	en
dc.subject.other	Fuels	en
dc.subject.other	Gasoline	en
dc.subject.other	Hydroelectric power	en
dc.subject.other	Ethanol fuels	en
dc.title	Ethanol, corn, and soybean price relations in a volatile vehicle-fuels market	en
heal.type	journalArticle	en
heal.identifier.primary	10.3390/en20200320	en
heal.publicationDate	2009	en
heal.abstract	The rapid upward shift in ethanol demand has raised concerns about ethanol's impact on the price level and volatility of agricultural commodities. The popular press attributes much of this volatility in commodity prices to a price bubble in ethanol fuel and recent deflation. Market economics predicts not only a softening of demand to high commodity prices but also a positive supply response. This volatility in ethanol and commodity prices are investigated using cointegration, vector error corrections (VECM), and multivariate generalized autoregressive conditional heteroskedascity (MGARCH) models. In terms of derived demand theory, results support ethanol and oil demands as derived demands from vehicle-fuel production. Gasoline prices directly influence the prices of ethanol and oil. However, of greater significance for the fuel versus food security issue, results support the effect of agricultural commodity prices as market signals which restore commodity markets to their equilibriums after a demand or supply event (shock). Such shocks may in the short-run increase agricultural commodity prices, but decentralized freely operating markets will mitigate the persistence of these shocks. Results indicate in recent years there are no long-run relations among fuel (ethanol, oil and gasoline) prices and agricultural commodity (corn and soybean) prices. © 2009 by the authors; licensee Molecular Diversity Preservation International, Basel, Switzerland.	en
heal.journalName	Energies	en
dc.identifier.issue	2	en
dc.identifier.volume	2	en
dc.identifier.doi	10.3390/en20200320	en
dc.identifier.spage	320	en
dc.identifier.epage	339	en