The effect of ethanol policies on the vertical price transmission in corn and food markets

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F49777513%3A23510%2F16%3A43928483" target="_blank" >RIV/49777513:23510/16:43928483 - isvavai.cz</a>

Výsledek na webu

<a href="http://www.sciencedirect.com/science/article/pii/S014098831630024X" target="_blank" >http://www.sciencedirect.com/science/article/pii/S014098831630024X</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.eneco.2016.02.010" target="_blank" >10.1016/j.eneco.2016.02.010</a>

Jazyk výsledku

angličtina

Název v původním jazyce

The effect of ethanol policies on the vertical price transmission in corn and food markets

Popis výsledku v původním jazyce

This paper analyzes the impact of ethanol policies on price transmission along the food supply chain. We consider the US corn sector and its vertical links with food and ethanol (energy) markets. We find that ethanol is a source of imperfect price transmission in the food supply chain. Ethanol, however, alters price transmission only under a binding blender's tax credit and only from food to corn (not vice versa). Our results indicate that ethanol weakens the response of corn and food prices in terms of their level changes to shocks occurring in agricultural (corn and food) markets. The results are robust to different assumptions on the model parameters. Although market power has previously been identified as a source of imperfect price transmission in the food supply chain, our findings show that in the presence of ethanol, the imperfect price transmission may occur even if markets are perfectly competitive. This warrants careful evaluation of markets before any policy intervention.

Název v anglickém jazyce

The effect of ethanol policies on the vertical price transmission in corn and food markets

Popis výsledku anglicky

This paper analyzes the impact of ethanol policies on price transmission along the food supply chain. We consider the US corn sector and its vertical links with food and ethanol (energy) markets. We find that ethanol is a source of imperfect price transmission in the food supply chain. Ethanol, however, alters price transmission only under a binding blender's tax credit and only from food to corn (not vice versa). Our results indicate that ethanol weakens the response of corn and food prices in terms of their level changes to shocks occurring in agricultural (corn and food) markets. The results are robust to different assumptions on the model parameters. Although market power has previously been identified as a source of imperfect price transmission in the food supply chain, our findings show that in the presence of ethanol, the imperfect price transmission may occur even if markets are perfectly competitive. This warrants careful evaluation of markets before any policy intervention.

Druh

J_x - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)

CEP obor

AH - Ekonomie

OECD FORD obor

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Projekt

<a href="/cs/project/GA16-02760S" target="_blank" >GA16-02760S: Produktivita zemědělských podniků, poptávka po potravinách a potravinová bezpečnost ve státech střední a východní Evropy</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2016

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

ENERGY ECONOMICS

ISSN

0140-9883

e-ISSN

—

Svazek periodika

55

Číslo periodika v rámci svazku

March 2016

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

11

Strana od-do

189-199

Kód UT WoS článku

000375358100017

EID výsledku v databázi Scopus

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