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Food, energy and environment: Is bioenergy the missing link?

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  • Ciaian, Pavel
  • Kancs, d'Artis

Abstract

We study price linkages between the food, energy and bioenergy markets. A vertically integrated multi-input, multi-output market model allows us to derive testable hypothesis, which we test by applying time-series analytical mechanisms to nine major traded food commodity prices along with one weighted average world crude oil price. The data consists of 939 weekly observations from January 1993 to December 2010. The empirical findings confirm the theoretical hypothesis that the prices for crude oil and food commodities are interdependent: a USD 1/barrel increase in oil prices and food commodity prices increase by between USD 0.09/tonne and USD 1.65/tonne.

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Bibliographic Info

Article provided by Elsevier in its journal Food Policy.

Volume (Year): 36 (2011)
Issue (Month): 5 (October)
Pages: 571-580

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Handle: RePEc:eee:jfpoli:v:36:y:2011:i:5:p:571-580

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Web page: http://www.elsevier.com/locate/foodpol

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Keywords: Food Bioenergy Crude oil Prices Renewable fuels Cointegration;

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Citations

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Cited by:
  1. Ikram Jebabli & Mohamed Arouri & Frédéric Teulon, 2014. "On the effects of world stock market and oil price shocks on food prices: An empirical investigation based on TVPVAR models with stochastic volatility," Working Papers 2014-209, Department of Research, Ipag Business School.
  2. Martha Negash & Jo Swinnen, 2012. "Biofuels and Food Security: Micro-evidence from Ethiopia," LICOS Discussion Papers 31912, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  3. Kristoufek, Ladislav & Janda, Karel & Zilberman, David, 2012. "Correlations between biofuels and related commodities before and during the food crisis: A taxonomy perspective," Energy Economics, Elsevier, vol. 34(5), pages 1380-1391.
  4. Matteo Manera & Marcella Nicolini & Ilaria Vignati, 2012. "Returns in Commodities Futures Markets and Financial Speculation: A Multivariate GARCH Approach," Working Papers 2012.23, Fondazione Eni Enrico Mattei.
  5. Ladislav Kristoufek & Karel Janda & David Zilberman, 2013. "Non-linear Price Transmission between Biofuels, Fuels and Food Commodities," CERGE-EI Working Papers wp481, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  6. Chrz, Stepan & Hruby, Zdenek & Janda, Karel & Kristoufek, Ladislav, 2013. "Provazanost trhu potravin, biopaliv a fosilnich paliv
    [Interconnections within food, biofuel, and fossil fuel markets]
    ," MPRA Paper 43958, University Library of Munich, Germany.
  7. Lukas Vacha & Karel Janda & Ladislav Kristoufek & David Zilbermand, 2013. "Time-Frequency Dynamics of Biofuels-Fuels-Food System," CAMA Working Papers 2013-27, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  8. Papież, Monika, 2014. "A dynamic analysis of causality between prices of corn, crude oil and ethanol," MPRA Paper 56540, University Library of Munich, Germany.
  9. Serra, Teresa & Zilberman, David, 2013. "Biofuel-related price transmission literature: A review," Energy Economics, Elsevier, vol. 37(C), pages 141-151.
  10. Ladislav Kristoufek & Karel Janda & David Zilberman, 2012. "Regime-Dependent Topological Properties of Biofuels Networks," CAMA Working Papers 2012-49, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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