Thursday, 08 August 2024 11:11

Renewables driving ag production down, prices up – study

Written by  Sudesh Kissun
The shift to renewable energy sources, such as solar and wind power, has led to increased food prices and a decrease in agricultural output. The shift to renewable energy sources, such as solar and wind power, has led to increased food prices and a decrease in agricultural output.

A recent study shows 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.

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.

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

"It directly impacts people's lives."

Silva and co-author Dr Luccas Attílio from the Federal University of Ouro Preto, Brazil, analysed data from 32 OECD countries, including New Zealand, from 2000 to 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," says Silva. "As the push for renewable energy intensifies, so does the pressure on vulnerable populations who bear the brunt of rising food costs."

Silva and Attílio say governments need to consider income support programmes 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," says Silva.

The study, detailed in the working paper 'Does the energy transition affect food prices and agricultural production?', originated from Professor 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 having.”

More like this

Dark ages

OPINION: Before we all let The Green Party have at it with their 'bold' emissions reduction plan, the Hound thought it wise to run the numbers through the old Casio.

Govt limits forestry conversions

Farmers have welcomed the Government’s move designed to limit farm to forestry conversions entering the Emissions Trading Scheme (ETS).

Featured

ANZCO Foods' net profit plunges

Meat processor ANZCO Foods’ net profit has plunged on the back of lower market returns which squeezed margins and impacted business performance.

Editorial: Forest for the trees?

OPINION: Most people will be aware of the Government's plans to boost coal, oil and gas production to meet energy requirements.

Protest planned outside dairy awards venue

As the dairy industry prepares to celebrate its top achievers at an awards night this Saturday, attendees are being warned to be aware of protests planned outside the venue – Baypark Arena, Mount Mauganaui.

National

Machinery & Products

Iconic TPW Woolpress turns 50!

The company behind the iconic TPW Woolpress, which fundamentally changed the way wool is baled in Australia and New Zealand,…

» Latest Print Issues Online

The Hound

Keep it up

OPINION: The good fight against "banking wokery" continues with a draft bill to scrap the red tape forcing banks and…

We're OK!

OPINION: Despite the volatility created by the shoot-from-the-hip trade tariff 'stratefy' being deployed by the new state tenants in the…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter