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Relationship among Energy, Bioenergy and Agricultural Commodity Prices: Re-Considering Structural Changes

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  • Nemati, Mehdi

Abstract

This study investigates the relationships among the prices of gasoline, ethanol, and agricultural products that include soybeans and corn. By increasing production of ethanol using corn, concerns about emerging new relationship between agricultural products price and energy price increased. The result indicates that, without considering structural breaks, there is no long-run relationship between energy and agricultural products prices. However, after consideration of structural breaks not only, long-run relationship between energy and agricultural products exist, but also this relationship intensified during last decade. Also, energy price can be transmitted to agricultural products prices from the indirect and direct channel.

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  • Nemati, Mehdi, 2017. "Relationship among Energy, Bioenergy and Agricultural Commodity Prices: Re-Considering Structural Changes," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(3), July.
    • Handle: RePEc:ags:ijfaec:266426
    DOI: 10.22004/ag.econ.266426
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    3. Caporin, Massimiliano & Naeem, Muhammad Abubakr & Arif, Muhammad & Hasan, Mudassar & Vo, Xuan Vinh & Hussain Shahzad, Syed Jawad, 2021. "Asymmetric and time-frequency spillovers among commodities using high-frequency data," Resources Policy, Elsevier, vol. 70(C).
    4. Umar, Zaghum & Jareño, Francisco & Escribano, Ana, 2021. "Agricultural commodity markets and oil prices: An analysis of the dynamic return and volatility connectedness," Resources Policy, Elsevier, vol. 73(C).

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