Work

Long‐run and Short‐run Co‐movements in Energy Prices and the Prices of Agricultural Feedstocks for Biofuel

Year: 2014

Type: article

Abstract: Recent expansions in biofuel production have led to concerns about an emerging “new relationship” between energy prices and the prices of agricultural feedstock for biofuel. We provide new econometric evidence on this relationship using common trend‐common cycle decompositions to estimate long‐run and short‐run co‐movement across various energy and agricultural prices. We also test for the presence of regime changes that may alter the relationship between energy and agricultural feedstock prices under certain conditions. We find that co‐movements between energy and agricultural feedstock prices tend to dissipate in the long‐run, which has important implications for biofuel and food policy.

Source: American Journal of Agricultural Economics

DOI: 10.1093/ajae/aau003

Authors: Robert J. Myers, Stanley R. Johnson, Michael Helmar, Harry Baumes

Language: English

Topic: Market Dynamics and Volatility

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Affordable and clean energy, Zero hunger, Climate action

Open Access status: bronze

Funder: U.S. Department of Agriculture

OpenAlex ID: W2161003095

FWCI: 15.73

Cites: 39

Cited by: 89

Related to: 10