Influence of two variables on the price of biodiesel sold in public auctions

Kallienny Costa Resende and Thiago Ricielli de Paula Aragão

Revista IPecege, 2016, vol. 2, issue 2

Abstract: Since November 2014, the addition of 7% biodiesel to diesel has been mandatory. The sale of the product is regulated by the National Agency of Petroleum, Natural Gas and Biofuels [ANP] and carried out bimonthly through public auctions. The fuel can be produced from various inputs, however, soybean oil has been the main one used so far. This study aimed to analyze the relationship between the price of biodiesel, the price of its main input, and the supply of biodiesel in the auctions. The price of biodiesel in auctions 28 to 39, referring to the first two months of 2013 to the last two months of 2014, was analyzed. To assess the influence of the aforementioned variables on the price of biodiesel, simple linear regression and Pearson correlation were used. The price of soybean oil was shown to be responsible for 65.41% of the variation in the price of biodiesel, while the volume offered was responsible for 33.37%. The correlation between the price of biodiesel and the price of soybean oil was 0.81, and with the volume offered in the auction it was -0.58. The price of soybean oil accounts for approximately 80% of the production costs of biodiesel, therefore this may explain the higher correlation between the variables.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 2016
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