An Auckland University study has found that shifting to renewable energy sources has led to increased food prices and decreased agricultural output.
The study, by University of Auckland Energy Centre director Professor Emilson Silva and Dr Luccas Attílio from the Federal University of Ouro Preto in Brazil, found that nations that are more advanced in their renewable energy drive face higher food prices and more pronounced reductions in agricultural production compared to those that are slower to adopt renewable energy sources.
The study, detailed in the working paper Does the Energy Transition Affect Food Prices and Agricultural Production?, analysed data from 32 OECD countries, including New Zealand, from 2000 to 2021.
Silva said the findings show that energy transition is not a neutral process and that it carries significant consequences.
“It directly impacts people’s lives.
“This evidence highlights a critical challenge. As the push for renewable energy intensifies, so does the pressure on vulnerable populations who bear the brunt of rising food costs.”
Governments need to consider income support programmes and adopt more nuanced approaches to the energy transition, Silva and Attílio said.
“While going ‘green’ is essential for mitigating climate change, it must be balanced with strategies to protect those negatively impacted,” Silva said.
While the benefits of renewable energy are well established, researchers are also examining the less-discussed economic and social impacts of the move towards ‘green’ energy.
The study originated from Silva’s observations of farmers’ recent protests in Australia and other countries against higher production costs associated with climate policies and the growth of renewable energy production.
“Some of the farmers had been grappling with rising work-related costs and issues stemming from their land being repurposed for solar and wind installations. So, I wanted to look at the data to find out what effect the uptake of renewable energy sources was actually having,” he said.
The study concluded that further investigation could scrutinise why advanced stages of an energy transition have a more pronounced effect on food prices and agricultural production.
“In essence, future research can provide explanations for the results we presented.”
It said governments can mitigate this situation by offering income transfers to these groups. The studies outlined in the paper have demonstrated the influence of government policies on the energy transition.
“We contend that in tandem with these policies, initiatives and programs aimed at supporting low-income families are imperative. Otherwise, the energy transition may precipitate and exacerbate a social crisis, disproportionately affecting vulnerable populations.”
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