Q58 - Government Policy

• Did the Renewable Fuel Standard Shift Market Expectations of the Price of Ethanol?

  Staff Working Paper 2017-35 Christiane Baumeister, Reinhard Ellwanger, Lutz Kilian

  It is commonly believed that the response of the price of corn ethanol (and hence of the price of corn) to shifts in biofuel policies operates in part through market expectations and shifts in storage demand, yet to date it has proved difficult to measure these expectations and to empirically evaluate this view.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Financial markets, Recent economic and financial developments JEL Code(s): Q, Q1, Q18, Q2, Q28, Q4, Q42, Q5, Q58