Examining the relationship between biofuel and food crops markets in Brazil

The objective of this article is to discuss the relationship between biofuels and food crop markets in Brazil, from August 2004 to August 2017. Prices of ethanol and food commodities (sugar, soybean and corn) were used to estimate a Vector Error Correction Model (VECM). The system also included Real/Dollar exchange rate, policy and seasonal dummies, and an exogenous variable representing international oil price. The results suggest the occurrence of linkages between biofuel and food commodity markets in Brazil. Thus, it is crucial that the development of public policies to pursue the objective of increasing the supply of renewable and less pollutant fuel do not conflict with the goals of food security.


Issue Date:
2018-07
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/275883
Language:
English
Total Pages:
15
JEL Codes:
Q02; Q01




 Record created 2018-08-16, last modified 2020-10-28

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)