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U.S. Ethanol Policy: Time to Reconsider?

James M. Griffin

Year: 2013
Volume: Volume 34
Number: Number 4
DOI: 10.5547/01956574.34.4.1
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Abstract:
This paper examines both the intended and unintended consequences of current U.S. ethanol policy. Originally, the 2007 legislation was intended to benefit consumers with lower gasoline prices, to reduce carbon emissions, and to promote oil security by displacing imported oil with domestically produced ethanol. While well-intentioned, the realized benefits have been minimal to consumers, the environment, and oil security. Alternatively, the unintended consequences on corn and other food commodity prices are having severe repercussions particularly in developing countries where consumers have more limited substitution possibilities. The extreme drought of 2012 illustrated the folly of mandating fixed quantities of ethanol use in gasoline, while allowing the residual to be left for food uses. It is time to reconsider and rescind the ethanol mandates.



Storage Business Models: Lessons for Electricity from Cloud Data, Frozen Food and Natural Gas

Karim L. Anaya and Michael G. Pollitt

Year: 2019
Volume: Volume 40
Number: The New Era of Energy Transition
DOI: 10.5547/01956574.40.SI1.kana
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Abstract:
The aim of this paper is to evaluate different well-established non-electric storage markets (cloud data, frozen food and natural gas) in order to identify relevant lessons for electrical energy storage (EES) connected to electricity distribution networks. The case studies that have been evaluated are Google Drive (cloud storage), Oakland International (frozen food storage) and Centrica Storage (gas storage). A specific business model methodology has been selected for comparing the different business model components across these sectors. The methodology (following Johnson et al., 2008) refers to key interconnected components: customer value proposition, the revenue formula, key resources and key processes. The evaluation of the three case studies suggests that well-developed business models already exist in growing and mature storage markets. Regulation plays also an important role across the different storage markets and business model components, however its importance varies depending on the type of market. Innovation in storage business models is also observed (technological and contractual) which should also be facilitated in EES. Innovation helps move storage markets towards more sustainable business models.



Oil price volatility is effective in predicting food price volatility. Or is it?

Ioannis Chatziantoniou, Stavros Degiannakis, George Filis, and Tim Lloyd

Year: 2021
Volume: Volume 42
Number: Number 6
DOI: 10.5547/01956574.42.6.icha
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Abstract:
Volatility spillovers between food commodities and oil prices have been identified in the literature, yet, there has been no empirical evidence to suggest that oil price volatility improves real out-of-sample forecasts of food price volatility. In this study we provide new evidence showing that oil price volatility does not improve forecasts of agricultural price volatility. This finding is based on extensive and rigorous testing of five internationally traded agricultural commodities (soybeans, corn, sugar, rough rice and wheat) and two oil benchmarks (Brent and WTI). We employ monthly and daily oil and food price volatility data and two forecasting frameworks, namely, the HAR and MIDAS-HAR, for the period 2nd January 1990 until 31st March 2017. Results indicate that oil volatility-enhanced HAR or MIDAS-HAR models cannot systematically outperform the standard HAR model. Thus, contrary to what has been suggested by the existing literature based on in-sample analysis, we are unable to find any systematic evidence that oil price volatility improves out-of-sample forecasts of food price volatility. The results remain robust to the choice of different out-of-sample forecasting periods and three different volatility measures.



Multivariate Convergence toward the SDGs 2, 6 and 7: An Empirical Analysis of World and MENA Region Countries

Carlo Andrea Bollino and Marzio Galeotti

Year: 2024
Volume: Volume 45
Number: Special Issue
DOI:
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Abstract:
This paper provides new evidence on the convergence process toward the achievement of three important SGDs: 2 6 and 7. We collect data on water, energy, and food per capita consumption for 108 countries from 1971 to 2018. We also analyze the group of countries in the MENA region, which is a critical region as far as water and food are concerned. We establish a new notion of multivariate sigma and beta-convergence. For the first notion, we look at the time behavior of the determinant of the covariance matrix of the three variables. For the second notion we use the Arellano-Bond method to jointly estimate the interrelated system of beta convergence equations for water, food, and energy. The results reveal that there is evidence of conditional sigma- convergence and beta-convergence processes for the countries. The multivariate approach reveals that there are spillover effects with complex positive impact of each variable on the others in the analyzed countries. The speed of convergence is computed to assess when the desired levels according to the prescription of the SDG are attained for water, energy, and food per capita consumption by each country. Results have important policy implications for interventions on macro variables. Investment has a positive accelerating effect on water and energy convergence. In addition, openness to foreign trade and inflow of foreign direct investment have a positive accelerating effect on water and food convergence, respectively.





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