Energy Policy, Vol.50, 689-698, 2012
Biodiesel as a motor fuel price stabilization mechanism
This article studies the capacity of biofuels to reduce motor fuel price fluctuations. For this purpose, we study dependence between crude oil and biodiesel blend prices in Spain. Copula models are used for this purpose. Results suggest that the practice of blending biodiesel with diesel can protect consumers against extreme crude oil price increases. (C) 2012 Elsevier Ltd. All rights reserved.