The Effect of Climate Change On Food Prices: OECD Case

Abstract

Climate change has emerged as the most important problem of this century for the world. We can speak of many social, political and economic multi-dimensional impacts of the climate change on humankind. On the one hand, the cities are suffering due to unusual environmental activities, on the other hand the migration due to the degraded environment affect the regional economies. At the same time, climate change is triggering the health problems of the humankind along with the disappearance of many animal species. Similar to these there are many different issues and problems of the climate change. But one problem is differing from the others and this problem is the worst one that humankind ever met: the food problem. Throughout the ages the food problem turned into an economic problem because agriculture becomes an economic sector that produces food. The effects of climate change on agricultural sector have strong influence on world economy. The supply of food decreases with the more frequent extreme weather events. A lot of people have difficulties in getting food and income of the agricultural sector declines. The purpose of the study is to draw attention to this problem. Therefore, the relationship between food prices and CO2 emission was tested by using panel cointegration techniques. Analyze was done by using the annual CPI-food and CO2 emission data of selected 26 OECD countries. The empirical results indicated the effect of the climate change on food prices. In consequence of this effect the policymakers must set more efficient policies.

İklim Politika Belirsizliği ve Enflasyon İlişkisi: ABD Örneği

“…It causes a rise in food and general consumer prices nationwide. Tekeoğlu et al (2017) andİlliyasu et al (2023) are also compatible with these results.…”