Abstract
Storage policies are used in many countries to smooth price volatility and thereby support food security. When there is a global decrease in food supply caused by a number of extreme weather effects, food reserves are expected to reduce the potential negative implications for households with low purchasing power. In this paper, the properties of such a stockpiling policy are assessed and compared to a policy with storage but without stockpiling. The results show that a stockholding policy is an expensive strategy that generates economic benefits only in extreme cases.
| Original language | English |
|---|---|
| Journal | Journal of Agricultural and Food Industrial Organization |
| DOIs | |
| Publication status | Published - 12 Nov 2019 |
Keywords
- food crisis
- grain reserves
- hoarding
- stockpiling
- storage
- uncertainty
