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NaDiMa Dialogue #10 | The Effects of Weather Related Shocks on Commodity Price Dynamics | 25 & 27 June

  • Inhalt ausklappen Inhalt einklappen AgendaAgenda

    Climate change is becoming increasingly apparent in different economic sectors. In 2018, the whole world struggled with extreme weather shocks which substantially affected the agricultural sector. In this sense, the weather-related event is the primary contributory factor behind food market volatilities. There is strong evidence that weather-related shocks significantly threaten the agricultural sector and food security. Supply shocks and price spikes in the agri-food markets are triggered by weather variabilities. Formal reports suggest that high temperatures are behind cyclical production patterns in food product markets. At the farm level, weather variabilities may affect farmers' decisions regarding agricultural activities. Further, the extreme weather events affect the cost of processing which can be passed through to the final product price. An increase in (transaction and transport) costs, driven by extreme weather shocks, reduces the gap between price and costs, which is referred to as an indicator of market functioning (i.e. market power). Hence, this shock may have significant effects on the market performance and price level. Cost pass-through analysis provides a useful approach to analyze the potential effects of temperature in this context.   

    The present workshop is designed to understand how to investigate the economic effects of climate change and weather-driven shocks on the agri-food sector. The first part of the workshop will introduce participants to a general framework for assessing the economic effects of climate change at different stages of agri-food value chains. We will start by presenting the climate change dynamics at the farm level. However, the main part of the workshop focuses on the pass-through of weather-related shocks along the value chain using panel data (e.g. panel cointegration and threshold panel models). The workshop will focus on training participants in the art of identifying proxies of weather variabilities and estimating their effects using Stata.

    Day 1 (25 June): Theory
    • Climate change and the agricultural sector
    • Cost pass-through analysis
    • Empirical model estimation

    Day 2 (27 June): Theory, Group work and presentation
    • Modeling temperature variabilities
    • Supervised group work
    • Group presentations

  • Inhalt ausklappen Inhalt einklappen SpeakersSpeakers

    Prof. Dr. Mohammad Reza Farzanegan, Philipps-Universität Marburg, CNMS & FB02

    Prof. Dr. Mohammad Farzanegan is Professor of Economics of the Middle East at Center for Near and Middle Eastern Studies (CNMS) & School of Business and Economics at Philipps-Universität Marburg. He is project leader of NaDiMa.

    Workshop Instructor:
    Dr. Omid Zamani, Senior Researcher, Thünen-Institut Braunschweig

    Dr. Omid Zamani is a Senior Researcher working for the Market Analysis Institute of Thuenen, Germany. He holds two PhDs in agricultural market analysis and applied economics. His research interests include policy analysis, market asymmetries, agri-food trade policies, and water economics.

  • Inhalt ausklappen Inhalt einklappen PrerequisitesPrerequisites

    To participate in the workshop you should have a basic knowledge of microeconomics and panel data econometrics. Please in case of any questions about the prerequisites.

  • Inhalt ausklappen Inhalt einklappen Registration and Technical RequirementsRegistration and Technical Requirements

    Time and Place: 25 June 2021, 1:00 pm - 7:00 pm (CET), and 27 June 2021, 10:00 am - 4:00 pm (CET), Online via Adobe Connect 

    How to join: Click here to register for the event.

    Please note! This is a 2-day event. Please only register if you aim to participate in both days.

    Platform: We use Adobe Connect for the NaDiMa Dialogue Series. It can be accessed via browser or desktop app. Meeting Applications for Adobe Connect can be downloaded here.

    Instructions and Technical Requirements for Participants: 
    Quick Start Guide for Participants
    How to be a Participant in Adobe Connect (YouTube)

  • Inhalt ausklappen Inhalt einklappen Poster and YouTube ChannelPoster and YouTube Channel

  • Inhalt ausklappen Inhalt einklappen SlidesSlides

    Slides: Part 1Part 2 | Part 3