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The Effect of Energy Price Shocks on Household Food Security

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  • Beatty, Timothy K.M.
  • Tuttle, Charlotte

Abstract

This paper examines how price shocks of energy resources including gasoline, natural gas, electricity and heating degree days affect three indicators of food insufficiency at a household level. Using the Current Population Survey-Food Security Supplement combined with energy price data from the Energy Information Administration and weather information from the National Oceanic and Atmospheric Administration, we find that positive price shocks in gas and natural gas increase the probability of food insecurity and food stress while negative price shocks of heating fuels decrease the probability each indicator of food stress. The most important effects occurred with negative heating fuel price shocks in the low income and cold state-residing low income subgroups. We also consider the effectiveness of federal assistance programs in cushioning households from price or weather shocks. We find that heating and food assistance are most effective in low income households that reside in cold states.

Suggested Citation

  • Beatty, Timothy K.M. & Tuttle, Charlotte, 2012. "The Effect of Energy Price Shocks on Household Food Security," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124791, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:124791
    DOI: 10.22004/ag.econ.124791
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    References listed on IDEAS

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    5. Dora Gicheva & Justine Hastings & Sofia Villas-Boas, 2007. "Revisiting the Income Effect: Gasoline Prices and Grocery Purchases," NBER Working Papers 13614, National Bureau of Economic Research, Inc.
    6. Dora Gicheva & Justine Hastings & Sofia Villas-Boas, 2010. "Investigating Income Effects in Scanner Data: Do Gasoline Prices Affect Grocery Purchases?," American Economic Review, American Economic Association, vol. 100(2), pages 480-484, May.
    7. C. M. Olson, "undated". "Factors contributing to household food insecurity in a rural upstate New York County," Institute for Research on Poverty Discussion Papers 1107-96, University of Wisconsin Institute for Research on Poverty.
    8. Timothy K. M. Beatty & Laura Blow & Thomas F. Crossley, 2014. "Is there a ‘heat-or-eat’ trade-off in the UK?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 177(1), pages 281-294, January.
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    Cited by:

    1. Lange, Ian & Moro, Mirko & Rahman, Mohammad, 2014. "Policy Labels and Investment Decision-making," Stirling Economics Discussion Papers 2014-01, University of Stirling, Division of Economics.
    2. Kim, S, 1977. "Instability Of Primary Exports, Income Stabilisation Policies And Welf Are," Working Papers 11, University of Sydney, School of Economics.

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    Keywords

    Consumer/Household Economics; Food Security and Poverty; Resource /Energy Economics and Policy;
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