The long-run impact of energy prices on world agricultural markets: The role of macro-economic linkages
The world prices of some food and energy products have followed similar large swings in recent years. We investigate the long-run relationship between these prices using a world Computable General Equilibrium model with detailed representations of food and energy markets. Particular attention is pai...
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Published in | Energy policy Vol. 38; no. 1; pp. 333 - 339 |
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Main Authors | , |
Format | Journal Article |
Language | English |
Published |
Kidlington
Elsevier Ltd
2010
Elsevier Elsevier Science Ltd |
Series | Energy Policy |
Subjects | |
Online Access | Get full text |
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Summary: | The world prices of some food and energy products have followed similar large swings in recent years. We investigate the long-run relationship between these prices using a world Computable General Equilibrium model with detailed representations of food and energy markets. Particular attention is paid to specifying macro-economic linkages which have often been overlooked in recent analysis and debate. We find that the omission of these macro-economic linkages has a substantial bearing on this relationship. A positive relationship due to the cost push effect has been identified in most analysis, but we find that the introduction of the real income effect may indeed imply a negative relationship between world food and energy prices. |
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Bibliography: | ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 ObjectType-Article-1 ObjectType-Feature-2 |
ISSN: | 0301-4215 1873-6777 |
DOI: | 10.1016/j.enpol.2009.09.023 |