A new insight into Malaysia's food price modelling: from the perceptive of bioenergy model

This study investigates the impact of bioenergy prices, specifically palm oil and biodiesel, on food prices in Malaysia. While traditional factors like supply, demand, and weather patterns have been studied, the specific influence of bioenergy still needs to be examined. Using Advanced Regression with Distributed Lag (ARDL) and Nonlinear Autoregressive Distributed Lag (NARDL) models, the research captures both linear and nonlinear dynamics. The findings reveal significant impacts of bioenergy prices on food prices, with palm oil playing a critical role due to its dual function as a food and bioenergy commodity. The intertwined nature of biodiesel and food prices through agricultural inputs is also highlighted. The study recommends policy measures such as promoting sustainable agricultural practices, enhancing market transparency, and diversifying cooking oil sources to stabilise food prices while supporting the bioenergy sector's growth, offering valuable insights for policy adjustments in Malaysia.