The Impact of Energy Markets on the EU Agricultural Sector Tokgoz, Simla
dc.contributor.department Center for Agricultural and Rural Development 2018-02-16T16:42:33.000 2020-06-30T01:05:36Z 2020-06-30T01:05:36Z 2015-07-06 2009-01-01
dc.description.abstract <p>The objective of this study is to analyze the impact of crude oil prices on the EU agricultural sector in an era when the biofuels sector is expanding because of policy initiatives and the desire to find alternative fuel sources. To this end, first a baseline is set up for the EU ethanol, grain, and dried distillers grains markets. In the next step, two different scenarios are run. The first scenario incorporates a 10-Euros-per-barrel increase in the EU crude oil price with the ethanol import tariffs in place. The second scenario incorporates the same shock with the ethanol import tariffs removed. In the first scenario, higher crude oil prices increase ethanol consumption, production, and therefore grain prices. In the second scenario, the impact of trade liberalisation is larger than the impact of the higher crude oil price. So, grain prices decline in this scenario despite an expansion in ethanol consumption. If there were a high enough crude oil price shock, which would affect the EU ethanol market more than trade liberalisation, the net impact on grain, feed, and food prices from the crude oil price shock would be mitigated by the increased trade from trade liberalisation. The study shows that the impact of energy prices on the EU agricultural sector is increasing with the emergence of the biofuels sector. It also illustrates the importance of trade policy in responding to higher crude oil and grain prices.</p>
dc.identifier archive/
dc.identifier.articleid 1506
dc.identifier.contextkey 7291546
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath card_workingpapers/537
dc.source.bitstream archive/|||Sat Jan 15 00:51:57 UTC 2022
dc.subject.disciplines Agricultural and Resource Economics
dc.subject.disciplines Agricultural Economics
dc.subject.disciplines Industrial Organization
dc.subject.disciplines International Economics
dc.subject.disciplines Oil, Gas, and Energy
dc.subject.keywords bioeconomic models
dc.subject.keywords energy
dc.subject.keywords trade analysis and policy
dc.title The Impact of Energy Markets on the EU Agricultural Sector
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isOrgUnitOfPublication 1a6be5f1-4f64-4e48-bb66-03bbcc25c76d
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