Food for the Stomach or Fuel for the Tank: What do Prices Tell Us?

Kashi Kafle and Hemant Pullabhotla

No 170273, 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota from Agricultural and Applied Economics Association

Abstract: The “food vs. fuel” debate has been difficult to resolve without letting the data speak. In this paper we investigate the short run interactions and the long-run equilibrium relationship between food and fuel prices. Results from cointegration analysis indicate a long-run equilibrium relationships between these prices. A closer examination of the price dynamics between ethanol and three food prices revealed that the corn-soybean linkage plays a key role in the fuel-food long-run relationship. Our results indicate that ethanol prices Granger cause corn prices, while no individual agricultural commodity appears to Granger cause ethanol prices. However, corn and soybean as a single group had a significant impact on the ethanol market.

Keywords: Agricultural and Food Policy; Demand and Price Analysis; Food Security and Poverty; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 28
Date: 2014-05-28
New Economics Papers: this item is included in nep-agr and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/170273/files/F ... shi%20_%20Hemant.pdf (application/pdf)

Related works:
Working Paper: Food for the Stomach or Fuel for the Tank: What do Prices Tell Us? (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea14:170273

DOI: 10.22004/ag.econ.170273

Access Statistics for this paper

More papers in 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().