Title:
Price Cointegration in the Austrian Wood Fuel Market
Author(s):
Kristöfel, C., Morawetz, U., Strasser, C., Schmid, E.
Document(s):
Paper
Abstract:
The wood fuel market is connected to the forestbased industry in various ways: the sawmill by products such as sawdust and wood chips are usually used as raw material in the panel, pulp and paper industry and are increasingly pelletized to supply the energy commodity market. Hence, the question arises whether or not prices of these woody biomass commodities are integrated. Threshold cointegration and asymmetric error correction models are used to analyze the price dynamics between roundwood, wood pellets and sawmill by products. Results indicate that a statistical significant price transmission between sawmill byproducts and wood pellets, but wood pellet and roundwood prices are not integrated. The price transmission between wood pellets and sawdust as well as wood chips is asymmetric. The Granger Causality test reveals that the prices of sawdust and wood chips depend on the price of wood pellets.
Keywords:
econometrics, wood fuel market, price cointegration, asymmetric price trasmission
Topic:
Biomass Policies, Markets and Sustainability
Subtopic:
Markets, Investments & Financing
Event:
22nd European Biomass Conference and Exhibition
Session:
4BO.7.1
Pages:
1330 - 1335
ISBN:
978-88-89407-52-3
Paper DOI:
10.5071/22ndEUBCE2014-4BO.7.1
Price:
FREE
