Are global ethanol markets a 'one great pool'?
Dutta, A
| HERO ID | 10287984 |
|---|---|
| In Press | No |
| Year | 2020 |
| Title | Are global ethanol markets a 'one great pool'? |
| Authors | Dutta, A |
| Journal | Biomass and Bioenergy |
| Volume | 132 |
| Page Numbers | 105436 |
| Abstract | The main objective of this empirical work is to test whether the global ethanol markets move together. To serve this purpose, prices of the US and Brazilian ethanol sectors have been analyzed. Employing the asymmetric multivariate GARCH model, we document significant price and volatility spillover effects between the ethanol markets under study. Such findings indicate that world ethanol markets move together and they are not regionalized. These results have important implications. For example, given that ethanol markets are codependent, information flow across ethanol markets could guide policymaking and the formulation of hedging strategies for contagion risk prevention during ethanol market downturns. In addition, this type of information on ethanol markets is also crucial for investors to maintain well-diversified portfolios, and for opening (closing) investment positions. |
| Doi | 10.1016/j.biombioe.2019.105436 |
| Wosid | WOS:000505153100006 |
| Is Certified Translation | No |
| Dupe Override | No |
| Is Public | Yes |
| Language Text | English |
| Keyword | global ethanol markets; US; Brazil; nne great pool |