Price Connectedness in U.S. Biodiesel and Petroleum Diesel Markets

Maria Gerveni, Scott H. Irwin and Teresa Serra

No 360642, 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association

Abstract: This study quantifies market integration across U.S. biodiesel plant-level and wholesale markets, as well as between biodiesel and petroleum diesel wholesale markets. Using Diebold-Yilmaz (2012, 2014) connectedness measures and a rolling window approach, we examine how price connectedness evolves across regions and supply chain levels. We find strong intra-supply chain integration within biodiesel markets and substantial cross-market integration between biodiesel and petroleum diesel wholesale markets. Connectedness declines sharply post-2022, coinciding with the renewable diesel boom as established supply chain interactions and regional price dynamics shift to reflect new market conditions.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 42
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea25:360642

DOI: 10.22004/ag.econ.360642

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