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Relationship among Energy, Bioenergy, and Agricultural Commodity Prices: Re-Considering Structural Changes

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  • Nemati, Mehdi

Abstract

This study investigates the relationships among the prices of gasoline, ethanol, and agricultural products that includes soybeans and corn. By increasing production of ethanol using corn, concerns about emerging new relationship between agricultural products price and energy price increased. The result indicates that, without considering structural breaks, there is no long-run relationship between energy and agricultural products prices. However, after consideration of structural breaks not only, long-run relationship between energy and agricultural products exist, but also this relationship intensified during last decade. Also, energy price can be transmitted to agricultural products prices from the indirect and direct channel.

Suggested Citation

  • Nemati, Mehdi, 2016. "Relationship among Energy, Bioenergy, and Agricultural Commodity Prices: Re-Considering Structural Changes," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229793, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea16:229793
    DOI: 10.22004/ag.econ.229793
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    References listed on IDEAS

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    Cited by:

    1. Tiwari, Aviral Kumar & Nasreen, Samia & Shahbaz, Muhammad & Hammoudeh, Shawkat, 2020. "Time-frequency causality and connectedness between international prices of energy, food, industry, agriculture and metals," Energy Economics, Elsevier, vol. 85(C).
    2. Manuel Monge & Luis A. Gil-Alana, 2020. "The Lithium Industry and Analysis of the Beta Term Structure of Oil Companies," Risks, MDPI, vol. 8(4), pages 1-17, December.
    3. Ramos & Pablo Negri & Martín Breitkopf & María Laura Ojeda, 2021. "From International to Regional Commodity Price Pass-through Using Self-Driven Recurrent Networks," Asociación Argentina de Economía Política: Working Papers 4513, Asociación Argentina de Economía Política.
    4. Saghaian, Sayed H. & Nemati, Mehdi & Walters, Cory G. & Chen, Bo, 2017. "Asymmetric Price Volatility Interaction between U.S. Food and Energy Markets," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258240, Agricultural and Applied Economics Association.

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    Keywords

    Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Demand and Price Analysis; Food Security and Poverty;
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