The interactions between Chinese local corn and WTI crude oil prices: an empirical analysis

Abstract This paper investigates the relationship between China’s fuel ethanol promotion plan and food security based on the interactions between the crude oil market, the fuel ethanol market and the grain market. Based on the US West Texas Intermediate (WTI) crude oil spot price and Chinese corn pr...

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Autores principales:	Zhengwei Ma, Wenjia Hou
Formato:	article
Lenguaje:	EN
Publicado:	KeAi Communications Co., Ltd. 2019
Materias:	WTI crude oil spot price Chinese corn price Granger causality test Impulse response analysis Science Q Petrology QE420-499
Acceso en línea:	https://doaj.org/article/8b3118eb7ddc4dd7ae95bf75326009de
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spelling	oai:doaj.org-article:8b3118eb7ddc4dd7ae95bf75326009de2021-12-02T10:08:15ZThe interactions between Chinese local corn and WTI crude oil prices: an empirical analysis10.1007/s12182-019-0339-11672-51071995-8226https://doaj.org/article/8b3118eb7ddc4dd7ae95bf75326009de2019-07-01T00:00:00Zhttp://link.springer.com/article/10.1007/s12182-019-0339-1https://doaj.org/toc/1672-5107https://doaj.org/toc/1995-8226Abstract This paper investigates the relationship between China’s fuel ethanol promotion plan and food security based on the interactions between the crude oil market, the fuel ethanol market and the grain market. Based on the US West Texas Intermediate (WTI) crude oil spot price and Chinese corn prices from January 2008 to May 2018, this paper applies Granger causality testing and a generalized impulse response function to explore the relationship between world crude oil prices and Chinese corn prices. The results show that crude oil prices are not the Granger cause of China’s corn prices, but changes in world crude oil prices will have a long-term positive impact on Chinese corn prices. Therefore, the Chinese government should pay attention to changes in crude oil prices when promoting fuel ethanol. Considering the conduction effect between fuel ethanol and the food market, the government should also take some measures to ensure food security.Zhengwei MaWenjia HouKeAi Communications Co., Ltd.articleWTI crude oil spot priceChinese corn priceGranger causality testImpulse response analysisScienceQPetrologyQE420-499ENPetroleum Science, Vol 16, Iss 4, Pp 929-938 (2019)
institution	DOAJ
collection	DOAJ
language	EN
topic	WTI crude oil spot price Chinese corn price Granger causality test Impulse response analysis Science Q Petrology QE420-499
spellingShingle	WTI crude oil spot price Chinese corn price Granger causality test Impulse response analysis Science Q Petrology QE420-499 Zhengwei Ma Wenjia Hou The interactions between Chinese local corn and WTI crude oil prices: an empirical analysis
description	Abstract This paper investigates the relationship between China’s fuel ethanol promotion plan and food security based on the interactions between the crude oil market, the fuel ethanol market and the grain market. Based on the US West Texas Intermediate (WTI) crude oil spot price and Chinese corn prices from January 2008 to May 2018, this paper applies Granger causality testing and a generalized impulse response function to explore the relationship between world crude oil prices and Chinese corn prices. The results show that crude oil prices are not the Granger cause of China’s corn prices, but changes in world crude oil prices will have a long-term positive impact on Chinese corn prices. Therefore, the Chinese government should pay attention to changes in crude oil prices when promoting fuel ethanol. Considering the conduction effect between fuel ethanol and the food market, the government should also take some measures to ensure food security.
format	article
author	Zhengwei Ma Wenjia Hou
author_facet	Zhengwei Ma Wenjia Hou
author_sort	Zhengwei Ma
title	The interactions between Chinese local corn and WTI crude oil prices: an empirical analysis
title_short	The interactions between Chinese local corn and WTI crude oil prices: an empirical analysis
title_full	The interactions between Chinese local corn and WTI crude oil prices: an empirical analysis
title_fullStr	The interactions between Chinese local corn and WTI crude oil prices: an empirical analysis
title_full_unstemmed	The interactions between Chinese local corn and WTI crude oil prices: an empirical analysis
title_sort	interactions between chinese local corn and wti crude oil prices: an empirical analysis
publisher	KeAi Communications Co., Ltd.
publishDate	2019
url	https://doaj.org/article/8b3118eb7ddc4dd7ae95bf75326009de
work_keys_str_mv	AT zhengweima theinteractionsbetweenchineselocalcornandwticrudeoilpricesanempiricalanalysis AT wenjiahou theinteractionsbetweenchineselocalcornandwticrudeoilpricesanempiricalanalysis AT zhengweima interactionsbetweenchineselocalcornandwticrudeoilpricesanempiricalanalysis AT wenjiahou interactionsbetweenchineselocalcornandwticrudeoilpricesanempiricalanalysis
_version_	1718397644502466560

The interactions between Chinese local corn and WTI crude oil prices: an empirical analysis

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