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This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries.
Snooks and McDonald have compiled an unequalled new interpretation of the Domesday Book, the ancient work containing detailed and comprehensive statistics on ownership, income, and resources of almost every manor of Norman England in 1086.
Abstract: In many poor countries, the recent increases in prices of staple foods raise the real incomes of those selling food, many of whom are relatively poor, while hurting net food consumers, many of whom are also relatively poor. The impacts on poverty will certainly be very diverse, but the average impact on poverty depends upon the balance between these two effects, and can only be determined by looking at real-world data. Results using household data for ten observations on nine low-income countries show that the short-run impacts of higher staple food prices on poverty differ considerably by commodity and by country, but, that poverty increases are much more frequent, and larger, than poverty reductions. The recent large increases in food prices appear likely to raise overall poverty in low income countries substantially.
A shocking outline of the interlinked crises in energy and agriculture — and appropriate responses The miracle of the Green Revolution was made possible by cheap fossil fuels to supply crops with artificial fertilizer, pesticides, and irrigation. Estimates of the net energy balance of agriculture in the US show that ten calories of hydrocarbon energy are required to produce one calorie of food. Such an imbalance cannot continue in a world of diminishing hydrocarbon resources. Eating Fossil Fuels examines the interlinked crises of energy and agriculture and highlights some startling findings: The world-wide expansion of agriculture has appropriated fully 40% of the photosynthetic capability of this planet. The Green Revolution provided abundant food sources for many, resulting in a population explosion well in excess of the planet's carrying capacity. Studies suggest that without fossil fuel based agriculture, the US could only sustain about two thirds of its present population. For the planet as a whole, the sustainable number is estimated to be about two billion. Concluding that the effect of energy depletion will be disastrous without a transition to a sustainable, relocalized agriculture, the book draws on the experiences of North Korea and Cuba to demonstrate stories of failure and success in the transition to non-hydrocarbon-based agriculture. It urges strong grassroots activism for sustainable, localized agriculture and a natural shrinking of the world's population. Dale Allen Pfeiffer is a novelist, freelance journalist and geologist who has been writing about energy depletion for a decade. The author of The End of the Oil Age, he is also widely known for his web project: www.survivingpeakoil.com.
Biofuels are a renewable source of energy used mainly for transportation. They link together food, energy and natural resources sectors, and involve ecological, social and inequality issues. They are an emblematic example of the interactions between economic, environmental, social and political decisions and, as a recent and complex issue, require updated and detailed information to be understood. This book aims to shed light on several economic, social and environmental issues connected to biofuel production and policies. The Economics of Biofuels adopts detailed descriptions, rigorous data analysis and precise econometric methods to estimate the effects of biofuel on different socio-economic factors, avoiding complicated and sometimes ineffective models based on context-specific parameters. In particular, the book focuses on the impact of bioenergy policy on biocommodity production and trade, and on the related phenomenon of land acquisitions to grow biofuel commodities. The book’s main findings are derived by an original and unique dataset collecting information on the investors acquiring land in Africa and on the voluntary standard, certification and labelling schemes adopted by them as Corporate Social Responsibility (CSR) strategy. The analysis links together in an original way public and private initiatives to make biofuel sustainable. Therefore, this book represents an improvement in the understanding of biofuel production and policy’s sustainability. This book is of interest to those who study environmental economics, agricultural economics and sustainable development. It is also suitable for those in the renewable energy sector, with a particular focus on biofuel sustainability.