Price Linkages in the Brazilian Sugarcane-Ethanol Industry in the Post-2008 Financial and Economic Crisis

Bo Chen and Sayed Saghaian

Journal of Agribusiness, 2015, vol. 33, issue 01

Abstract: The Brazilian sugarcane-ethanol industry has undergone substantial changes after the 2008 financial and economic crisis. The industry has seen a large decrease in production and policy changes concerning gasoline, the main substitute for ethanol. In this context, price linkages of commodities in this industry, including Brazilian ethanol, gasoline, and sugar prices, international crude oil prices, and prices of U.S. ethanol are investigated. The results indicate Brazilian ethanol and sugar, oil, and U.S. ethanol prices form a longrun relationship. Moreover, Brazilian ethanol prices respond to price shocks in other commodity markets and adjust to correct the disequilibrium error induced by those shocks, maintaining the long-run relationship. Corresponding industry and policy implications are also discussed.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/311374/files/P ... conomic%20Crisis.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jloagb:311374

DOI: 10.22004/ag.econ.311374

Access Statistics for this article

More articles in Journal of Agribusiness from Agricultural Economics Association of Georgia Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().