Higher Fuel and Food Prices : Impacts and Responses for Mozambique

By C. Arndt, R. Benfica, Nelson Maximiano, A. Nucifora, J. Thurlow. 2008

167 citations recorded by the source corpus.

Rising world prices for fuel and food represent a negative terms-of-trade shock for Mozambique. The impacts of these price rises are analyzed using various approaches. Detailed price data show that the world price increases are being transmitted to domestic prices. Short-run net benefit ratio analysis indicates that urban households and households in the southern region are more vulnerable to food price increases. Rural households, particularly in the North and Center, often benefit from being in a net seller position. Longer-term analysis using a computable general equilibrium (CGE) model of Mozambique indicates that the fuel price shock dominates rising food prices from both macroeconomic and poverty perspectives. Again, negative impacts are larger in urban areas. The importance of agricultural production response in general and export response in particular is highlighted. Policy analysis reveals difficult trade-offs between short-run mitigation and long-run growth. Improved agricultural productivity has powerful positive impacts, but remains difficult to achieve and may not address the immediate impacts of higher prices.

Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/4cf379ffaa9c6961357098a7b93a337540c1662a

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Citations in the corpus

The food price crisis and urban food (in)security (2010, background): “The study estimated that urban poverty rates rose by 8 percentage points as a result of higher fuel and food prices (Arndt et al., 2008).”
Self-Reported Food Insecurity in Africa During the Food Price Crisis (2013, background): “Several studies focusing on SubSaharan Africa have also concluded strong negative welfare effects (Arndt et al., 2008; Wodon and Zaman, 2009).”
Reflections on the Global Food Crisis: how did it happen? how has it hurt? and how can we prevent the next one? (2010, background): “2008), and Mozambique (Arndt et al. 2008) are quite consistent in finding moderate, large, and very large changes, respectively.”