Comparing the Impact of Food and Energy Price Shocks on Consumers : A Social Accounting Matrix Analysis for Ghana
Many countries have been affected by food and oil price shocks. Rising energy costs have manifested themselves through higher prices of gas at the pump and through price increases for many other goods such as kerosene and transport. But in some cou...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/10/9900514/comparing-impact-food-energy-price-shocks-consumers-social-accounting-matrix-analysis-ghana http://hdl.handle.net/10986/6945 |
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okr-10986-69452021-04-23T14:02:32Z Comparing the Impact of Food and Energy Price Shocks on Consumers : A Social Accounting Matrix Analysis for Ghana Parra, Juan Carlos Wodon, Quentin APPROACH BEEF CAPITAL ACCOUNT CASSAVA CEREAL PRICES CEREAL PRODUCTS CEREALS COCOA COMMODITIES COMMODITY CONSUMER PRICE CONSUMER PRICES COST OF LIVING CRUDE OIL DAIRY DEVELOPING COUNTRIES DEVELOPMENT PATHS DIESEL ECONOMIC DEVELOPMENT EGGS ELECTRIC UTILITIES ELECTRICITY ELECTRICITY TARIFFS ENERGY COSTS ENERGY PRICE EXPENDITURE EXPENDITURES FISH PROCESSING FOOD CONSUMPTION FOOD CONSUMPTION PATTERNS FOOD PRICE FOOD PRICES FOOD PROCESSING FOOD PRODUCTS FOOD SUBSIDIES FOOD SUPPLY FOODS FOREIGN DEBT FRUIT FUEL FUEL PRICES FUELS GAS GRAINS IFPRI INCOME INCOME TAXES INCOMES INTERNATIONAL MARKET KEROSENE LOW-INCOME COUNTRIES MAIZE MARKETING MEAT MEATS NUTS OIL IMPORTS OIL PRICE OIL PRICES OUTPUT PALM OIL POVERTY ALLEVIATION POWER POWER GENERATION PRICE CEILINGS PRICE CHANGE PRICE CHANGES PRICE CONTROLS PRICE INCREASE PRICE INCREASES PRICE OF OIL PRODUCER PRICE PRODUCER PRICE INDEX PRODUCER PRICES PURCHASING REAL ESTATE SALES SAVINGS SOCIAL SAFETY NETS SUB-SAHARAN AFRICA SUPPLY OF CRUDE TAX TAX PAYMENTS UTILITIES VEGETABLES WOOD PRODUCTS YAMS Many countries have been affected by food and oil price shocks. Rising energy costs have manifested themselves through higher prices of gas at the pump and through price increases for many other goods such as kerosene and transport. But in some countries there has also been some degree of protection for consumers for example when authorities have chosen to try to keep electricity tariffs affordable through implicit subsidies (which are unfortunately often poorly targeted). For food prices, the effect on consumers has often been more rapid than for oil-related products, as the increase in import prices have been typically fully passed on to consumers and has often been accompanied by increases in the prices of domestically produced foods. Recent attention has therefore rightly been focused on food prices, but the issue of oil prices is important as well. While food prices tend to have a larger direct impact on consumers due to the larger share of food in total household consumption, oil prices may have larger multiplier effects than food prices because oil-related products are used as intermediary products in many productive sectors. It therefore remains an open question as to whether the medium-term impact of food or oil prices is likely to be larger in any given country. It also remains open to question as to whether urban as opposed to rural households are most likely to be affected. While urban households are likely to rely on consumption of imported goods more than rural households, the weight of food and possibly oil-related products may well be larger in the consumption patterns of rural than urban households. Answering these questions may be useful to guide discussions on compensatory measures that governments can take to respond to the twin crisis of higher food and oil prices. In this context the objective of this paper is to provide a comparative analysis of the multiplier impact of both types of price shocks using a recent Social Accounting Matrix for Ghana. The paper finds that both the direct impacts of food prices and the indirect impacts of oil prices are potentially large, so that both should be dealt with by authorities when considering compensatory measures to protect households from higher consumer prices. 2012-06-01T21:57:43Z 2012-06-01T21:57:43Z 2008-10 http://documents.worldbank.org/curated/en/2008/10/9900514/comparing-impact-food-energy-price-shocks-consumers-social-accounting-matrix-analysis-ghana http://hdl.handle.net/10986/6945 English Policy Research Working Paper; No. 4741 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Ghana |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
APPROACH BEEF CAPITAL ACCOUNT CASSAVA CEREAL PRICES CEREAL PRODUCTS CEREALS COCOA COMMODITIES COMMODITY CONSUMER PRICE CONSUMER PRICES COST OF LIVING CRUDE OIL DAIRY DEVELOPING COUNTRIES DEVELOPMENT PATHS DIESEL ECONOMIC DEVELOPMENT EGGS ELECTRIC UTILITIES ELECTRICITY ELECTRICITY TARIFFS ENERGY COSTS ENERGY PRICE EXPENDITURE EXPENDITURES FISH PROCESSING FOOD CONSUMPTION FOOD CONSUMPTION PATTERNS FOOD PRICE FOOD PRICES FOOD PROCESSING FOOD PRODUCTS FOOD SUBSIDIES FOOD SUPPLY FOODS FOREIGN DEBT FRUIT FUEL FUEL PRICES FUELS GAS GRAINS IFPRI INCOME INCOME TAXES INCOMES INTERNATIONAL MARKET KEROSENE LOW-INCOME COUNTRIES MAIZE MARKETING MEAT MEATS NUTS OIL IMPORTS OIL PRICE OIL PRICES OUTPUT PALM OIL POVERTY ALLEVIATION POWER POWER GENERATION PRICE CEILINGS PRICE CHANGE PRICE CHANGES PRICE CONTROLS PRICE INCREASE PRICE INCREASES PRICE OF OIL PRODUCER PRICE PRODUCER PRICE INDEX PRODUCER PRICES PURCHASING REAL ESTATE SALES SAVINGS SOCIAL SAFETY NETS SUB-SAHARAN AFRICA SUPPLY OF CRUDE TAX TAX PAYMENTS UTILITIES VEGETABLES WOOD PRODUCTS YAMS |
| spellingShingle |
APPROACH BEEF CAPITAL ACCOUNT CASSAVA CEREAL PRICES CEREAL PRODUCTS CEREALS COCOA COMMODITIES COMMODITY CONSUMER PRICE CONSUMER PRICES COST OF LIVING CRUDE OIL DAIRY DEVELOPING COUNTRIES DEVELOPMENT PATHS DIESEL ECONOMIC DEVELOPMENT EGGS ELECTRIC UTILITIES ELECTRICITY ELECTRICITY TARIFFS ENERGY COSTS ENERGY PRICE EXPENDITURE EXPENDITURES FISH PROCESSING FOOD CONSUMPTION FOOD CONSUMPTION PATTERNS FOOD PRICE FOOD PRICES FOOD PROCESSING FOOD PRODUCTS FOOD SUBSIDIES FOOD SUPPLY FOODS FOREIGN DEBT FRUIT FUEL FUEL PRICES FUELS GAS GRAINS IFPRI INCOME INCOME TAXES INCOMES INTERNATIONAL MARKET KEROSENE LOW-INCOME COUNTRIES MAIZE MARKETING MEAT MEATS NUTS OIL IMPORTS OIL PRICE OIL PRICES OUTPUT PALM OIL POVERTY ALLEVIATION POWER POWER GENERATION PRICE CEILINGS PRICE CHANGE PRICE CHANGES PRICE CONTROLS PRICE INCREASE PRICE INCREASES PRICE OF OIL PRODUCER PRICE PRODUCER PRICE INDEX PRODUCER PRICES PURCHASING REAL ESTATE SALES SAVINGS SOCIAL SAFETY NETS SUB-SAHARAN AFRICA SUPPLY OF CRUDE TAX TAX PAYMENTS UTILITIES VEGETABLES WOOD PRODUCTS YAMS Parra, Juan Carlos Wodon, Quentin Comparing the Impact of Food and Energy Price Shocks on Consumers : A Social Accounting Matrix Analysis for Ghana |
| geographic_facet |
Africa Ghana |
| relation |
Policy Research Working Paper; No. 4741 |
| description |
Many countries have been affected by
food and oil price shocks. Rising energy costs have
manifested themselves through higher prices of gas at the
pump and through price increases for many other goods such
as kerosene and transport. But in some countries there has
also been some degree of protection for consumers for
example when authorities have chosen to try to keep
electricity tariffs affordable through implicit subsidies
(which are unfortunately often poorly targeted). For food
prices, the effect on consumers has often been more rapid
than for oil-related products, as the increase in import
prices have been typically fully passed on to consumers and
has often been accompanied by increases in the prices of
domestically produced foods. Recent attention has therefore
rightly been focused on food prices, but the issue of oil
prices is important as well. While food prices tend to have
a larger direct impact on consumers due to the larger share
of food in total household consumption, oil prices may have
larger multiplier effects than food prices because
oil-related products are used as intermediary products in
many productive sectors. It therefore remains an open
question as to whether the medium-term impact of food or oil
prices is likely to be larger in any given country. It also
remains open to question as to whether urban as opposed to
rural households are most likely to be affected. While urban
households are likely to rely on consumption of imported
goods more than rural households, the weight of food and
possibly oil-related products may well be larger in the
consumption patterns of rural than urban households.
Answering these questions may be useful to guide discussions
on compensatory measures that governments can take to
respond to the twin crisis of higher food and oil prices. In
this context the objective of this paper is to provide a
comparative analysis of the multiplier impact of both types
of price shocks using a recent Social Accounting Matrix for
Ghana. The paper finds that both the direct impacts of food
prices and the indirect impacts of oil prices are
potentially large, so that both should be dealt with by
authorities when considering compensatory measures to
protect households from higher consumer prices. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Parra, Juan Carlos Wodon, Quentin |
| author_facet |
Parra, Juan Carlos Wodon, Quentin |
| author_sort |
Parra, Juan Carlos |
| title |
Comparing the Impact of Food and Energy Price Shocks on Consumers : A Social Accounting Matrix Analysis for Ghana |
| title_short |
Comparing the Impact of Food and Energy Price Shocks on Consumers : A Social Accounting Matrix Analysis for Ghana |
| title_full |
Comparing the Impact of Food and Energy Price Shocks on Consumers : A Social Accounting Matrix Analysis for Ghana |
| title_fullStr |
Comparing the Impact of Food and Energy Price Shocks on Consumers : A Social Accounting Matrix Analysis for Ghana |
| title_full_unstemmed |
Comparing the Impact of Food and Energy Price Shocks on Consumers : A Social Accounting Matrix Analysis for Ghana |
| title_sort |
comparing the impact of food and energy price shocks on consumers : a social accounting matrix analysis for ghana |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/10/9900514/comparing-impact-food-energy-price-shocks-consumers-social-accounting-matrix-analysis-ghana http://hdl.handle.net/10986/6945 |
| _version_ |
1764401395075645440 |