As countries like Australia continue to embrace renewable energy, a recent study highlights some overlooked impacts of this transition.

While the benefits of renewable energy are well-documented, researchers are now examining the economic and social effects of the shift towards ‘green’ energy.

A study conducted by Professor Emilson Silva from the University of Auckland Energy Centre and Dr Luccas Attílio from the Federal University of Ouro Preto, Brazil, reveals that the transition to renewable energy sources such as solar and wind power has led to increased food prices and a decrease in agricultural output.

The study analysed data from 32 OECD countries, including Australia, over the period from 2000 to 2021.

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

The study indicates that countries that are more advanced in their renewable energy efforts face more substantial effects, with higher food prices and more pronounced reductions in agricultural production compared to those slower in adopting renewable energy sources.

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

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

The researchers suggest that governments need to consider income support programs and adopt more nuanced approaches to the energy transition to mitigate these impacts.

The study, titled Does the energy transition affect food prices and agricultural production?, was inspired by recent protests by farmers in Australia and other countries against higher production costs associated with climate policies and the growth of renewable energy production.

Professor Silva noted that some farmers have been struggling with rising work-related costs and issues stemming from their land being repurposed for solar and wind installations.

While the shift to renewable energy is essential for mitigating climate change, the study emphasises the need for balanced strategies to protect those negatively impacted by the transition.

The paper is available for download for those interested in exploring the detailed findings and implications of this research.