Green tax: study shows renewables may raise food prices

While the benefits of renewable energy are well established, researchers are now also examining the less discussed economic and social impacts of the move towards ‘green’ energy.

The research showed that the shift to renewable energy sources, such as solar and wind power, has led to increased food prices and a decrease in agricultural output.

Professor Emilson Silva, director of the University of Auckland Energy Centre and co-author of the study, said: “Our findings show that the energy transition is not a neutral process and that it carries significant consequences.”

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,”  Silva said.

Silva and co-author Dr Luccas Attílio, from the Federal University of Ouro Preto in Brazil, analysed data from 32 organisations from Economic Co-operation and Development (OECD) countries, from 2000–2021.

Their findings show that nations more advanced in their renewable energy drive face more substantial effects, with higher food prices and more pronounced reductions in agricultural production, compared to those that are slower to adopt renewable energy sources.

“This evidence highlights a critical challenge,” Silva said.

“As the push for renewable energy intensifies, so does the pressure on vulnerable populations who bear the brunt of rising food costs.”

Dr Silva and Dr Attílio conclude from their research that governments need to consider income support programs and adopt more nuanced approaches to the energy transition.

“While going ‘green’ is essential for mitigating climate change, it must be balanced with strategies to protect those negatively impacted,” Silva said.

Read the full findings here.

Image credit: iStock.com/PhonlamaiPhoto