Stanford Woods Institute for the Environment

Stanford Woods Institute for the Environment

Response of corn markets to climate volatility under alternative energy futures

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Response of corn markets to climate volatility under alternative energy futures

April 22, 2012

Authors:
Noah Diffenbaugh, Thomas W. Hertel, Martin Scherer, Monika Verma

In the next three decades, America's number one crop could see increased price volatility due to climate change, according to a study by Stanford Woods Institute Center Fellow Noah Diffenbaugh and Purdue University Distinguished Professor of Agricultural Economics Thomas Hertel. The effect of more frequent climate change-induced heat waves is likely to have far greater influence on the volatility of corn prices than factors such as oil prices, trade policies and government biofuel mandates, the researchers found in "Response of corn markets to climate volatility under alternative energy futures."