Impact of climate change mitigation actions on food prices in developing countries.

Nugroho, Agus Dwi; Fekete-Farkas, Mária; Lakner, Zoltán

Mitigation is a crucial action in reducing the effects of climate change. However, it is frequently debated in developing countries because mitigation not only improves the environment but also reduces food production, which can increase food prices. Therefore, this study examines the impact of climate change mitigation actions on food prices in developing countries. The vector error correction model (VECM) was used to examine data collected between 1990 and 2020 from 87 developing countries. The current food price in Africa and Latin America and the Caribbean (LAC) have experienced short and long-term increases due to previous year's inflation. However, the current food prices in Asia have decreased in the short-term. The inefficient use of nitrogen nutrients in the previous year have also increased food prices in Africa in both the short and long-term but only in the short-term in Asia and LAC. Other climate mitigation efforts, such as water productivity in the previous year briefly lowered food prices in Asia in the short term and renewable energy can lower food prices in Africa and LAC in the short term. Thus, our study shows that climate change mitigation actions can lower food prices in developing countries.

CLIMATE change; FOOD prices; CLIMATE change mitigation; FOOD sales & prices; FOOD production; PRICE increases; NITROGEN in water; RENEWABLE energy sources; ENERGY consumption

Regional Statistics, 2024, Vol 14, Issue 6, p1025

2063-9538

Academic Journal

10.15196/RS140601