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An econometric analysis of the link between biodiesel demand and Malaysian palm oil market.

The objective of this study is to describe the important factors affecting Malaysian palm oil industry especially biodiesel demand. To that end a market model representing palm oil production, import, world excess demand, domestic consumption, export demand, rest of the world excess supply and pal...

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Main Authors: Applanaidu, Shri Dewi, Mohamed Arshad, Fatimah, Shamsudin, Mad Nasir, Abdel Hameed, Amna Awad
Format: Article
Language:English
English
Published: Canadian Center of Science and Education (CCSE) 2011
Online Access:http://psasir.upm.edu.my/id/eprint/23602/1/An%20econometric%20analysis%20of%20the%20link%20between%20biodiesel%20demand%20and%20Malaysian%20palm%20oil%20market.pdf
http://psasir.upm.edu.my/id/eprint/23602/
http://web.ccsenet.org/
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spelling my.upm.eprints.236022015-10-02T03:40:56Z http://psasir.upm.edu.my/id/eprint/23602/ An econometric analysis of the link between biodiesel demand and Malaysian palm oil market. Applanaidu, Shri Dewi Mohamed Arshad, Fatimah Shamsudin, Mad Nasir Abdel Hameed, Amna Awad The objective of this study is to describe the important factors affecting Malaysian palm oil industry especially biodiesel demand. To that end a market model representing palm oil production, import, world excess demand, domestic consumption, export demand, rest of the world excess supply and palm oil prices is formulated. A system of equations of eight structural equations and four identities is estimated by two stage least squares method using annual data for the period 1976-2008. The domestic price equation is formed to investigate the link between biodiesel demand and the Malaysian palm oil market. The domestic price is significantly affected by Malaysian ending stock, world palm oil price, biodiesel demand and lagged domestic price. The elasticity of Malaysian palm oil domestic price with respect to biodiesel demand is then obtained. Results suggest that biodiesel demand has a positive impact on the Malaysian palm oil domestic price. Thus, significant growth in biodiesel demand is important in explaining Malaysian palm oil price determination. Canadian Center of Science and Education (CCSE) 2011-02 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/23602/1/An%20econometric%20analysis%20of%20the%20link%20between%20biodiesel%20demand%20and%20Malaysian%20palm%20oil%20market.pdf Applanaidu, Shri Dewi and Mohamed Arshad, Fatimah and Shamsudin, Mad Nasir and Abdel Hameed, Amna Awad (2011) An econometric analysis of the link between biodiesel demand and Malaysian palm oil market. International Journal of Business and Management, 6 (2). pp. 35-45. ISSN 1833-3850; ESSN:1833-8119 http://web.ccsenet.org/ English
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
English
description The objective of this study is to describe the important factors affecting Malaysian palm oil industry especially biodiesel demand. To that end a market model representing palm oil production, import, world excess demand, domestic consumption, export demand, rest of the world excess supply and palm oil prices is formulated. A system of equations of eight structural equations and four identities is estimated by two stage least squares method using annual data for the period 1976-2008. The domestic price equation is formed to investigate the link between biodiesel demand and the Malaysian palm oil market. The domestic price is significantly affected by Malaysian ending stock, world palm oil price, biodiesel demand and lagged domestic price. The elasticity of Malaysian palm oil domestic price with respect to biodiesel demand is then obtained. Results suggest that biodiesel demand has a positive impact on the Malaysian palm oil domestic price. Thus, significant growth in biodiesel demand is important in explaining Malaysian palm oil price determination.
format Article
author Applanaidu, Shri Dewi
Mohamed Arshad, Fatimah
Shamsudin, Mad Nasir
Abdel Hameed, Amna Awad
spellingShingle Applanaidu, Shri Dewi
Mohamed Arshad, Fatimah
Shamsudin, Mad Nasir
Abdel Hameed, Amna Awad
An econometric analysis of the link between biodiesel demand and Malaysian palm oil market.
author_facet Applanaidu, Shri Dewi
Mohamed Arshad, Fatimah
Shamsudin, Mad Nasir
Abdel Hameed, Amna Awad
author_sort Applanaidu, Shri Dewi
title An econometric analysis of the link between biodiesel demand and Malaysian palm oil market.
title_short An econometric analysis of the link between biodiesel demand and Malaysian palm oil market.
title_full An econometric analysis of the link between biodiesel demand and Malaysian palm oil market.
title_fullStr An econometric analysis of the link between biodiesel demand and Malaysian palm oil market.
title_full_unstemmed An econometric analysis of the link between biodiesel demand and Malaysian palm oil market.
title_sort econometric analysis of the link between biodiesel demand and malaysian palm oil market.
publisher Canadian Center of Science and Education (CCSE)
publishDate 2011
url http://psasir.upm.edu.my/id/eprint/23602/1/An%20econometric%20analysis%20of%20the%20link%20between%20biodiesel%20demand%20and%20Malaysian%20palm%20oil%20market.pdf
http://psasir.upm.edu.my/id/eprint/23602/
http://web.ccsenet.org/
_version_ 1643828108111904768
score 13.211869

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