The shift towards renewable energy, such as solar and wind power, is influencing food prices and agricultural output, according to a recent study.

Researchers Professor Emilson Silva from the University of Auckland and Dr Luccas Attílio of the Federal University of Ouro Preto analysed data from 32 OECD countries, including New Zealand, from 2000 to 2021.

Their study highlights that while renewable energy offers significant environmental benefits, it also has notable economic side effects.

“Our findings show that the energy transition is not a neutral process and that it carries significant consequences,” said Professor Silva. “It directly impacts people's lives.”

The study indicates that countries more advanced in their renewable energy initiatives face higher food prices and reduced agricultural production compared to those slower in adopting green energy solutions.

“This evidence highlights a critical challenge,” Professor Silva added.

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

Director of the University of Auckland’s Energy Centre, Professor Emilson Silva.

The researchers suggest that governments should implement income support programmes and adopt balanced strategies to mitigate the adverse effects on low-income households.

The working paper, titled ‘Does the Energy Transition Affect Food Prices and Agricultural Production?’, was inspired by observations of increased protests from farmers in Australia and other nations against higher production costs related to climate policies and renewable energy installations.

Professor Silva’s study calls for careful consideration of the social impacts of green energy policies, emphasising the need for comprehensive solutions to support those affected.