IDEAS home Printed from https://ideas.repec.org/p/ags/aaea25/360962.html
   My bibliography  Save this paper

Diesel Price Pass-Through into California Grocery Store Milk Prices

Author

Listed:
  • Gafarov, Bulat
  • Hasbany, James
  • Hilscher, Jens

Abstract

We present new estimates of diesel fuel price pass-through into milk prices. We use Nielsen IQ scanner data from 2006 to 2023 to estimate average diesel pass-through to milk prices in California. We estimate monthly impulse response estimates using panel local projection, and controlling for core CPI inflation. This approach is unique as it delivers pass-through statistics down to the consumer level. We find that the pass-through is significantly different for organic milk (lower), conventional milk, and private label milk (higher). Transmission effects peak at 23% and 10% for private label and national brand conventional milk respectively. The effect of diesel price changes on organic milk are not statistically different from zero, suggesting a low share of transportation costs in the overall prices of high-markup milk varieties. The high pass through measurements show that the diesel price surge of 2022 significantly affected milk prices and thus contributed to the recent food inflation and cost of living crisis.

Suggested Citation

  • Gafarov, Bulat & Hasbany, James & Hilscher, Jens, 2025. "Diesel Price Pass-Through into California Grocery Store Milk Prices," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360962, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:360962
    DOI: 10.22004/ag.econ.360962
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/360962/files/75257_94421_105300_Milk_prices_passthrough.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.360962?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea25:360962. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.