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Price Comovement Between Biodiesel and Natural Gas

Karel Janda and Jakub Kourilek

MPRA Paper from University Library of Munich, Germany

Abstract: We study relationship between biodiesel, as a most important biofuel in the EU, relevant feedstock commodities and fossil fuels. Our main interest is to capture relationship between biodiesel and natural gas. They are both used either directly as a fuel or indirectly in form of additives in transport. Therefore, our purpose is to �nd price linkage between biofuel and natural gas to support or reject the claim that they compete as alternative fuels and potential substitutes. The estimated price link between biodiesel and diesel is negative and the strongest among analysed commodities. The price transmission between biodiesel and natural gas is the weakest one.

Keywords: biofuels; shale gas (search for similar items in EconPapers)
JEL-codes: Q16 Q42 (search for similar items in EconPapers)
Date: 2016-11-03
New Economics Papers: this item is included in nep-ene and nep-tre
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