Energy and Food Security: Linkages through Price Volatility

Farhad Taghizadeh-Hesary (), Ehsan Rasoulinezhad and Naoyuki Yoshino ()

Energy Policy, 2019, vol. 128, issue C, 796-806

Abstract: This study examines the linkages between energy price and food prices over the period 2000–2016 by using a Panel-VAR model in the case of eight Asian economies. Our results confirm that energy price (oil price) has a significant impact on food prices. According to the results of impulse response functions, agricultural food prices respond positively to any shock from oil prices. Our results show that there is a linkage between energy and food security through price volatility. Since inflation in oil price is harmful for food security, it would be necessary to diversify the energy consumption in this sector, from too much reliance on fossil fuels to an optimal combination of renewable and nonrenewable energy resources that will be in favor of not only the energy security by also the food security. In addition, the paper found that the impact of biofuel prices on food prices is statistically significant but explains less than 2% of the food price variance. However, by increasing the demand for biofuel, there should be more concern about the global increase in agricultural commodities prices and endangering food security, especially in vulnerable economies.

Keywords: Oil price; Food price; Agricultural commodities prices; Energy Security; Food security (search for similar items in EconPapers)
JEL-codes: O13 Q11 Q18 Q41 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (98)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421518308486
Full text for ScienceDirect subscribers only

Related works:
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:eee:enepol:v:128:y:2019:i:c:p:796-806

DOI: 10.1016/j.enpol.2018.12.043

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().