Open AccessBiofuels and Food: Can Brazilian Ethanol Production Affect Domestic Food Prices?
Author(s) -
Daniel Henrique Dario Capitani
Publication year - 2018
Publication title -
economia aplicada/economia aplicada
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.116
H-Index - 10
eISSN - 1980-5330
pISSN - 1413-8050
DOI - 10.11606/1980-5330/ea124294
Subject(s) - biofuel , food prices , economics , context (archaeology) , exchange rate , error correction model , ethanol fuel , production (economics) , agriculture , agricultural economics , econometrics , monetary economics , food security , macroeconomics , cointegration , microbiology and biotechnology , geography , archaeology , biology
This paper examines the impacts of Brazilian domestic ethanol production over several local agricultural food commodities, using a structural autoregressive model with error correction (VECM). Other variables are included in the model, as oil prices and exchange rate. Overall, results point out that Brazilian ethanol has low impact over domestic food commodities prices, even lesser than oil and exchange rate impacts. Simulated shocks on ethanol does not seems to have significant influence over commodities prices. Results suggest that the concern over biofuel and food debate has not much meaning in the Brazilian ethanol context.