How Increased Food and Energy Prices Affect Consumer Welfare

Kuo Huang and Sophia Huang

No 49199, 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin from Agricultural and Applied Economics Association

Abstract: We analyze the consumer welfare effects of increased food and energy prices and find that the own-price elasticities of both food and energy are relatively inelastic, which explain well the dynamics of the recent soaring food and energy prices. The estimated demand elasticities are then used to analyze the consumer welfare effects of price changes in food and energy. The results indicate that an increase of food and energy prices would incur a substantial consumer welfare loss, which is a heavy burden for low income households.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 8
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea09:49199

DOI: 10.22004/ag.econ.49199

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