IDEAS home Printed from https://ideas.repec.org/p/ags/asea26/404832.html

Natural Gas Price Shocks and the U.S. Fertilizer Market: Are All Price Shocks Alike?

Author

Listed:
  • Lee, Wonseok
  • Kim, Jaebeom
  • Brorsen, B. Wade

Abstract

This paper examines how shocks in the natural gas and corn markets influence nitrogen fertilizer prices and how these relationships change after the 2005 and 2007 changes in biofuel policies. Using a block-recursive structural VAR framework, we decompose changes in fertilizer prices into structural shocks driven by supply, demand, and precautionary demand. The results show that fertilizer prices are influenced mainly by demand-side shocks, while supply shocks have only small effects on prices. After the structural break, corn demand shocks become more influential, indicating tighter linkages between corn and fertilizer markets. These findings imply that biofuel policies increased nitrogen fertilizer price volatility by strengthening the linkages between energy and agriculture, with fertilizer price movements driven primarily by demand-side shock

Suggested Citation

Handle: RePEc:ags:asea26:404832
DOI: 10.22004/ag.econ.404832
as

Download full text from publisher

File URL: https://ageconsearch.umn.edu/record/404832/files/Wonseok_Lee_NCCC-134_2026_PAPER%28PDF%29.pdf
Download Restriction: no
File URL: https://libkey.io/10.22004/ag.econ.404832?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:asea26:404832. 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/aseanid.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.