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The Role of Energy on the Price Volatility of Fruits and Vegetables: Evidence from Turkey

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  • Uçak, Harun
  • Yelgen, Esin
  • Arı, Yakup

Abstract

In agricultural economics, fluctuations in food prices and the factors affect-ing these fluctuations have always been an important research topic. From produc-tion to delivery to consumers, the supply chain of agricultural products has a dynamic structure with continuous changes. In this dynamic process, analyzing the intensive use of energy at each stage has gained more importance with its deepening effects in com-parison to the past. This study will empirically explore the volatility spillovers between energy price index and fruit-vegetables price index in the period of 2007-2020 in Tur-key using the Kanas and Diebold-Yilmaz approaches. According to the results obtained from the Kanas approach in the study, it has been observed that there is a statistically significant volatility spillover from the energy price index to the vegetable price index, whereas there is no statistically significant volatility spillover to the fruit price index. This finding was supported by the results obtained from the Diebold-Yilmaz approach showing that there is a volatility spillover of 13.52% to the vegetable price index and 0.86% to the fruit price index from the energy price index.

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  • Uçak, Harun & Yelgen, Esin & Arı, Yakup, 2022. "The Role of Energy on the Price Volatility of Fruits and Vegetables: Evidence from Turkey," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(1), April.
    • Handle: RePEc:ags:aieabj:322732
    DOI: 10.22004/ag.econ.322732
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    1. Harun Uçak & Yakup Ari & Esin Yelgen, 2022. "The volatility connectedness among fertilisers and agricultural crop prices: Evidence from selected main agricultural products," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(9), pages 348-360.
    2. Zaremba, Lukasz, 2023. "Uwarunkowania Zmienności Cen Warzyw W Polsce," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2023(4).
    3. Aliabadi, Mohammad Mehdi Farsi & Sardehaie, Behzad Fakari, 2024. "Economic sanctions and barley price regime change in Iran," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 13(2), July.

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