Sectoral Effects of a World Oil Price Shock: Economywide Linkages to the Agricultural Sector

Hanson, Kenneth; Robinson, Sherman; Schluter, Gerald
July 1993
Journal of Agricultural & Resource Economics;1993, Vol. 18 Issue 1, p96
Academic Journal
The effects of a world oil price shock on U.S. agriculture are analyzed in an economywide environment. We use an input-output model to analyze the direct and indirect cost linkages between energy and other sectors of the economy. Then, to allow sectoral output adjustment and the effects on the U.S. current account, we use the U.S. Department of Agriculture/Economic Research Service Computable General Equilibrium (CGE) model to analyze the sectoral effects under three different macro adjustment scenarios. The effects on agriculture are not limited to the direct and indirect energy costs. Exchange rate or foreign borrowing adjustments to higher oil import costs and government support programs for agriculture also matter.


Related Articles

  • The heat will hurt more next winter. Williams, Brian // Indianapolis Business Journal;8/14/2006, Vol. 27 Issue 23, p13 

    The article focuses on issues regarding the effect of high energy prices on home-heating costs in Indianapolis, Indiana. With geopolitical instability and increasing international demand for fossil fuels, prices for petroleum products have increased. This condition has caused home-heating costs...

  • Chip in to keep control of costs.  // Commercial Motor;5/18/2006, Vol. 203 Issue 5178, p21 

    The article reports on fuel prices in Europe. There was a slight decline in prices of fuel in Great Britain. It is forecasted that fuel and energy prices will continue to rise. Control of every last liter of fuel will help fight back the increasing cost and consumption. The price of diesel in...

  • Biofuels could cut pump price.  // Professional Engineering;9/21/2005, Vol. 18 Issue 17, p6 

    The article reports that developing the indigenous biofuels industry could help to stem rising fuel prices. Large-scale growth of crops such as oilseed rape and sugar beet so they can he processed into fuels, so called energy crops, could also have the benefits of reducing vehicle emissions and...

  • CRUDE AWAKENING. Smith, Patricia // New York Times Upfront;9/1/2008, Vol. 141 Issue 1, p6 

    The article focuses on the impact caused by the increase in oil price in the U.S. It says that energy cost is an integral part of the price of everything the consumers buy. Eventually, it leaves less money for the consumers to spend for everything which accordingly damages a slow economy and...

  • Beige Book Shows Continued Economic Deceleration. Smith, Nicole M. // Bond Buyer;9/7/2006, Vol. 357 Issue 32461, p2 

    The article reports on the economic activity from 12 Federal Reserve districts in the U.S. These districts reported that economic activity continued to soar from mid-July to end of August 2006. However, five districts have shown a slow down in growth, while the other seven claimed little change....

  • Recession by depression. Rundles, Jeff // ColoradoBiz;Aug2008, Vol. 35 Issue 8, p70 

    The author reflects on the economic impact of the oil and energy crisis in the U.S. The author relates that the continuing increase of gasoline prices contributes to the increase of inflation, national deficit and decline of housing sales. He points that the home utility costs and heating-fuel...

  • Fuel burn. Dibenedetto, Bill // Journal of Commerce (1542-3867);6/16/2008, Vol. 9 Issue 24, p12 

    The article discusses the impact of rising energy costs on supply chains and the actions they are taking in response to the trend. It is noted that high fuel costs have hit hard the supply chains, but in a perverse way, they could benefit companies by encouraging them to squeeze more efficiency...

  • Uncertainty fuels styrene hike. Gibson, Jane // ICIS Chemical Business;8/14/2006, Vol. 1 Issue 31, p31 

    The article reports on the styrene price hike. Shell's force majeure at its Ellba facility in the Netherlands and uncertainty following the sudden upsurge in crude oil prices, has taken styrene spot numbers to unprecedented highs. The high costs are blamed primarily on the tightness, but have...

  • Energy Bill all but dead.  // National Petroleum News;Dec2002, Vol. 94 Issue 13, p8 

    Reports on the inability of U.S. Congressional legislators to reach an agreement concerning the national energy bill. Stand of the Senate Democrats on the issue; Reason for the loathing of House negotiators; Data on the prices of retail gasoline.

  • Deepwater: A robust market in a climate of uncertainty. Robertson, Steve; Payne, Thom // Offshore;May2009, Vol. 69 Issue 5, p32 

    The article presents a macroeconomic outlook for energy demand and global oil supply. The outlook suggest that it is probably to surpass and renew pressure on oil prices expected over the long term. The recession may impact deepwater projects because of their relative complexity and associated...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics