Dynamic biofuel price pass-through: implication for food security
Aicha Lucie Sanou  1, 2, *@  , Mohamed Boly  1@  
1 : Centre d\'Études et de Recherches sur le Développement International - Clermont Auvergne  (CERDI)  -  Site web
Université Clermont Auvergne : UMR6587, Centre National de la Recherche Scientifique : UMR6587
Université Clermont Auvergne, École d\'économie - CNRSPôle tertiaire, 26 avenue Léon Blum - F-63000 CLERMONT-FERRAND Cedex -  France
2 : PhD student
ESSEC Business School, UCA (Université Clermont Auvergne) et CNRS
26 avenue leon blum, 63000 Clermont-ferrand -  France
* : Auteur correspondant

In a context of food insecurity and energy deficiency, this paper analyzes the dynamic pass-through of world biofuel price shocks to food prices on a sample of developing and developed countries over the period 2000 to 2014. In order to estimate the dynamic responses at each period of interest, we use the local projection approach method. Our results show that there is a positive response to food prices to biofuel price shocks. The impulse response functions display that a one-cent increase in ethanol prices per liter feeds through to 38 cents increase in maize price two years after the shocks. We observe the same impact for soybean price. The asymmetry analysis indicates that there is compensation between positive and negative ethanol price shocks, but the effect of biodiesel positive price shocks is higher than negative shocks.


footer.html