\documentclass[english,german]{scrartcl}
\usepackage[latin1]{inputenc}
\usepackage{geometry}
\geometry{verbose,a4paper,tmargin=1.75cm,bmargin=2cm,lmargin=2cm,rmargin=2cm,headheight=0.8cm,headsep=0.5cm,footskip=0.5cm}
\usepackage{babel}
\usepackage{url}
\urlstyle{same}
\newcommand\email{\begingroup \urlstyle{same}\Url}\usepackage{graphicx}
\usepackage{units}
\usepackage{tabularx}
\usepackage{wasysym} % enable use of \permil instead of \textperthousand
\usepackage{marvosym}
\usepackage{arabtex}
\usepackage{hyphenat}
\usepackage{booktabs}
\usepackage{mdwlist}
\renewcommand{\thefootnote}{\relax}
\usepackage{index}
\newindex{key}{kdx}{knd}{Keywords}
\newindex{author}{idx}{ind}{Authors}
\usepackage{fancyhdr}
\pagestyle{fancy}
\renewcommand{\headrulewidth}{0pt}
\fancyfoot{}
\usepackage{ifpdf}
\ifpdf
%\usepackage[activate]{pdfcprot}
%\usepackage[owner=Tapioka, print=true, copy=true, edit=false, annotate=false,set]{pdfcrypt}
%encryption: not supported any more (since pdftex 1.10)
\usepackage[pdftex]{thumbpdf}
\usepackage[pdftex]{hyperref}
\hypersetup{pdftitle={Obstacles and Trade Patterns in Bioenergy Trade: A Gravity Analysis},pdfauthor={Anja Faße, Dirk Röttgers, Ulrike Grote},pdfsubject={Tropentag 2010: Abstract},pdfkeywords={Biodiesel, biofuel, gravity model, trade},pdfpagemode=None,colorlinks=true}
\else
\usepackage{ae}
\usepackage{textcomp}
\fi
\begin{document}
\ifpdf
\parbox[b]{2.5cm}{\resizebox*{2.5cm}{!}{\includegraphics{dtt2010.jpg}}}
\else
\parbox[b]{2.5cm}{\resizebox*{2.5cm}{!}{\includegraphics{dtt2010.eps}}}
\fi
\hfill
\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 14-16, 2010, Zurich}}\\[1ex] \Large{``World Food System  ---\\A Contribution from Europe''\\[2ex]}}
\hspace{0.1cm}
\begin{center}
\Large{\textbf{Obstacles and Trade Patterns in Bioenergy Trade: A Gravity Analysis\footnote{\textbf{Contact Address:} Dirk Röttgers, Leibniz Universität Hannover, Institute for Environmental Economics and World Trade, Königsworther Platz 1, 30163~Hannover, Germany, \mbox{e-mail}: \email{roettgers@iuw.uni-hannover.de}}\\[0.8ex]}}
\normalsize{\textsc{Anja Faße$^{1}$, Dirk Röttgers$^{2}$, Ulrike Grote$^{3}$}}
\end{center}
\begin{itemize*}
\item[]{\small{\textit{$^{1}$Leibniz Universität Hannover, Institute for Environmental Economics and World Trade, Germany}}}
\item[]{\small{\textit{$^{2}$Leibniz Universität Hannover, Institute for Environmental Economics and World Trade, Germany}}}
\item[]{\small{\textit{$^{3}$Leibniz Universität Hannover, Institute for Environmental Economics and World Trade, Germany}}}
\end{itemize*}
\index[author]{Faße, Anja}
\index[author]{Röttgers, Dirk}
\index[author]{Grote, Ulrike}
\begin{center}
\vspace{1.1cm}
\textbf{Abstract}
\begin{abstract}
\normalsize{
Canola oil, the most important raw material for biodiesel in Europe, is mainly grown in industrialised countries, especially in the EU. Other raw materials for bioenergy like palm oil or sugar cane, however, are mainly produced in developing countries. Producing and exporting these raw materials is considered as an opportunity for many developing countries with a high dependence on agriculture. Yet, although they have a comparative advantage in the production of these goods, they do not export as much as would be expected. 



Against this background, this paper aims at analysing the role of tariffs and other barriers in explaining trade patterns in general and the lack of trade of certain goods in particular using the gravity model approach. A special emphasis is put on the reasons for the small involvement of African countries in trade of raw materials for bioenergy production. The size of past trade stands in stark contrast to the recent surge in African bioenergy projects.



Moreover, we take a closer look at the value chain in international bioenergy trade and analyse the effect of demand for bioenergy and supply of raw materials on production patterns of the respective raw and intermediate goods. It is observed that the fragmentation of the value chain, meaning the decision which parts of a value chain to keep close to the production of raw material, is influenced to a large extent by transport and production costs. 



To control for period specific effects like the announcement or introduction of political measures concerning bioenergy in the gravity model, we use a set of panel data spanning 6 continents and years from 2003 to 2007. We allow for a zero inflated trade variable in the gravity equation to capture effects of potential bilateral trade relationships. A two stage estimator is applied to counter the resulting selection bias and spatial weights are introduced to control for spatial autocorrelation.}

\vspace{0.5cm}
\end{abstract}
\end{center}
\noindent \textbf{Keywords:} Biodiesel, biofuel, gravity model, trade
\index[key]{Biodiesel}
\index[key]{Biofuel}
\index[key]{Gravity model}
\index[key]{Trade}
\end{document}