Regression prices for conceptual of Indonesian biodiesel market index price based on quality characteristics

Dwitya Nur Fadilah, Bambang Heru Susanto, Cahyo Setyo Wibowo

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The linear regression approach is used in this study to do valuation biodiesel formula prices in Indonesia in which the feedstock characteristics would influence the difference quality characteristics of biodiesel. The important properties: oxidation stability (OSI), total acid number (TAN), kinematic viscosity (vk), and water content (WC) whose have direct impact to quality degradation are investigated from several feedstock. This study proposed biodiesel index prices are taken as a function of their characteristics and regressed biodiesel prices on the associated characteristic levels are set at an alpha value (α) = 274.854 ΔOSI-12923.684 ΔTAN-4573.543 Δvk-48498.973 ΔWC + 0.4 as an implicit prices of premium/discount. Validation alpha formula by statistical analysis obtained 100 percent of the squared correlation with confidence levels of F-test and t-test are both 1, these evidence are proof that quality differentials have a positive and strong significance relationship on the price differentials. Implementation alpha value into Indonesian market index price is evaluated to palm-based biodiesel that has quality degradation during three months' storage periods. The results fetching a highest premium price at first we ek and a lowest premium price at 13th week of Rp 10,077/L and Rp 535/L, respectively.

Original languageEnglish
Title of host publication4th International Tropical Renewable Energy Conference, i-TREC 2019
EditorsEny Kusrini, I. Gde Dharma Nugraha
PublisherAmerican Institute of Physics Inc.
ISBN (Electronic)9780735420144
DOIs
Publication statusPublished - 3 Sept 2020
Event4th International Tropical Renewable Energy Conference 2019, i-TREC 2019 - Bali, Indonesia
Duration: 14 Aug 201916 Aug 2019

Publication series

NameAIP Conference Proceedings
Volume2255
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference4th International Tropical Renewable Energy Conference 2019, i-TREC 2019
Country/TerritoryIndonesia
CityBali
Period14/08/1916/08/19

Keywords

  • Alpha value
  • Market index price
  • Palm-based biodiesel
  • Price differentials
  • Quality characteristics

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