Estimation of the co-movements between biofuel production and food prices: A wavelet-based analysis


Bilgili F., Koçak E., Kuşkaya S., Bulut Ü.

Energy, vol.214, pp.1-25, 2020 (SCI-Expanded)

  • Publication Type: Article / Article
  • Volume: 214
  • Publication Date: 2020
  • Doi Number: 10.1016/j.energy.2020.118777
  • Journal Name: Energy
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, PASCAL, Aerospace Database, Agricultural & Environmental Science Database, Applied Science & Technology Source, Aquatic Science & Fisheries Abstracts (ASFA), CAB Abstracts, Communication Abstracts, Compendex, Computer & Applied Sciences, Environment Index, Geobase, INSPEC, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Page Numbers: pp.1-25
  • Erciyes University Affiliated: Yes

Abstract

Recently, the significance of biofuel production on food prices has become an important topic of  discussion  within  the  framework  of  sustainable  development.  Based  on  the  relevant discussions, this work aims at observing the influence of biofuel production on food prices in the  US  for  the  monthly  period  1981-2018  by  considering  all  possible  structural  changes between  the  co-movements  of  the  variables.  In  the  analyses,  oil  prices  and  population variables are also employed as control variables. To this end, we employ continuous wavelet model   estimations   for   the   whole   sample   period   and   sub-sample   periods   at   different frequencies. All computations have considered the potential changes in co-movements of the variables  at  different  sub-sample  periods  corresponding  to  high  and  low  frequencies  of observed  time  series  data.  Estimation  results  show that  there  exist  significant  relationships between  biofuel  production  and  food  prices  in  the  short-term  and  long-term  cycles.  The outcomes  of  the  research  hence  may  provide  some  insights  into  the  design  of  sustainable energy and food policies in the United States.