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Oil price effects on land use competition: an empirical analysis

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  • Diermeier, Matthias
  • Schmidt, Torsten

Abstract

The increasing use of food commodities for biofuel production may intensify the competition for arable land. To test this hypothesis we analyze the effects of crude oil prices on prices, areas and quantities of selected food commodities empirically. On the world level the crude oil price Granger causes an increasing area use for the production of maize, soybean oil, sugar and wheat. For the U.S., we find that the maize price is the key variable influencing the total area used for cereal production. In Indonesia and Malaysia the palm oil price has effects on the cultivated area for rice.

Suggested Citation

  • Diermeier, Matthias & Schmidt, Torsten, 2014. "Oil price effects on land use competition: an empirical analysis," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(1), pages 1-17.
    • Handle: RePEc:ags:aergaa:253679
    DOI: 10.22004/ag.econ.253679
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    Cited by:

    1. Yongxi Ma & Lu Zhang & Shixiong Song & Shuao Yu, 2022. "Impacts of Energy Price on Agricultural Production, Energy Consumption, and Carbon Emission in China: A Price Endogenous Partial Equilibrium Model Analysis," Sustainability, MDPI, vol. 14(5), pages 1-14, March.
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    3. María Blanco & Marcel Adenäuer & Shailesh Shrestha & Arno Becker, 2012. "Methodology to assess EU Biofuel Policies: The CAPRI Approach," JRC Research Reports JRC80037, Joint Research Centre.
    4. Miroslava Rajcaniova & d'Artis Kancs & Pavel Ciaian, 2014. "Bioenergy and global land-use change," Applied Economics, Taylor & Francis Journals, vol. 46(26), pages 3163-3179, September.
    5. Amigues, Jean-Pierre & Moreaux, Michel, 2018. "Competing Land Uses and Fossil Fuel, Optimal Energy Conversion Rates During the Transition Toward a Green Economy Under a Pollution Stock Constraint," TSE Working Papers 18-981, Toulouse School of Economics (TSE).
    6. Döhrn, Roland & an de Meulen, Philipp & Kitlinski, Tobias & Schmidt, Torsten & Vosen, Simeon, 2012. "Die wirtschaftliche Entwicklung im Ausland: Krise im Euro-Raum dämpft Weltwirtschaft," RWI Konjunkturberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, vol. 63(2), pages 5-39.
    7. Roland Döhrn & Philipp an de Meulen & Tobias Kitlinski & Torsten Schmidt & Simeon Vosen, 2012. "Die wirtschaftliche Entwicklung im Ausland: Krise im Euro-Raum dämpft Weltwirtschaft," RWI Konjunkturbericht, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 35, 09.

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    More about this item

    Keywords

    Agribusiness; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety;
    All these keywords.

    JEL classification:

    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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