Revisiting the palm oil boom: An examination of consumption in the oils complex

Daniel J. Sanders, Joseph Balagtas (balagtas@purdue.edu) and Guillaume Gruère

No 103726, 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania from Agricultural and Applied Economics Association

Abstract: The production, trade, and market share of palm oil has shown impressive growth in the last two decades. As a result of sustainability concerns over issues such as deforestation in Indonesia, the causes of the growth in the palm oil market have received considerable attention. The growth of the biofuels market is one potential culprit that has been notably discussed, but it is not the only possible driver of growth in the palm oil market. Restrictions on genetically-modified organisms may have played a role, especially as they relate to limits on oil produced from GMO soybeans. Additionally, increasing concerns over health issues such as trans-fats may have spurred substitution to the low trans-fats palm oil. This analysis details some of the changes in net imports, market shares, and world prices that the edible oil complex has undergone. Additionally, a vector-error correction model and Granger causality are applied to the prices of the edible oils. The differences in causality across the oils in the complex suggest that the drivers of change may be more multi-dimensional than expected.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 2
Date: 2011
New Economics Papers: this item is included in nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/103726/files/AAEA%20poster%20-%2013364.pdf (application/pdf)

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:ags:aaea11:103726

DOI: 10.22004/ag.econ.103726

Access Statistics for this paper

More papers in 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search (aesearch@umn.edu).