Crude oil–corn–ethanol – nexus: A contextual approach

Valeri Natanelov, Andrew McKenzie and Guido Van Huylenbroeck

Energy Policy, 2013, vol. 63, issue C, 504-513

Abstract: This paper offers a holistic study on the complex relationships between crude oil, corn and ethanol during a turbulent period between 2006 and end of 2011. Through a holistic mapping of the current market situation and a contextual analytical design we show that there exists a strong relationship between crude oil and corn markets on one side, and crude oil and ethanol on the other. However, the price relationship between corn and ethanol was revealed to be less straightforward, and is driven by the US government fuel policy. Furthermore the study indicates that corn markets have became more prone to volatility due to ethanol production, especially when the demand for corn is high and/or the crude oil prices are high enough to create a competitive market for ethanol.

Keywords: Commodity futures prices; Biofuel policy; Context (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421513008197
Full text for ScienceDirect subscribers only

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:eee:enepol:v:63:y:2013:i:c:p:504-513

DOI: 10.1016/j.enpol.2013.08.026

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().