Nonlinear cointegration in the food-ethanol-oil system: Evidence from smooth threshold vector error correction models
15 December 2013
Since 2000, global production of ethanol, the most widely used transport renewable fuel, more than quadrupled, reaching in 2011 a total of 84.6 billion litres. This paper examines the nature of the relationship between crude oil, ethanol and the prices of maize, wheat and rice.