A Review of the Effect of Cleaner Energy Transition on Food Prices and Climate Change Mitigation in Sub-Saharan Africa: Nigeria as a Case Study
Year 2024,
, 580 - 595, 15.09.2024
Edamisan Ikuemonisan
Abstract
Access to clean energy is crucial for achieving sustainable development goals, but investment in renewable energy has been unevenly distributed between developed and developing countries. Developed nations have seen significant growth in renewable energy investment since the Paris Agreement, while developing countries struggle to secure the necessary funds. This study focuses on Sub-Saharan Africa and explores the relationship between the transition to cleaner energy and its impact on food prices. By conducting a systematic literature review, the study highlights the challenges posed by investment disparities, particularly in Sub-Saharan Africa, where financial constraints and infrastructural deficits hinder progress in clean energy infrastructure. The findings suggest that, without appropriate policy reforms and consistent implementation, the transition to cleaner energy in the region may contribute to rising food prices and exacerbate food insecurity. Effective integration of agricultural and energy policies is essential to ensure that the energy transition supports food security objectives. Governments in Sub-Saharan Africa should prioritize policy reforms that promote renewable energy adoption while considering food security. Additionally, reintroducing transparent subsidy programs can help mitigate the impact of high energy costs during the transition to cleaner energy. This review emphasizes the importance of equitable investment and comprehensive policy strategies to balance renewable energy adoption with food security and economic equity in Sub-Saharan Africa.
Ethical Statement
In preparing this manuscript, all ethical guidelines have been rigorously adhered to. The author declares that this commentary has been exclusively submitted to the Blacksea Journal of Agriculture and is not being considered for publication in any other journal.
Supporting Institution
Department of Agricultural Economics, Adekunle Ajasin University, Akungba-Akoko
Thanks
The author appreciates the cooperation of the Department of Agricultural Economics, Adekunle Ajasin University, Akungba-Akoko, who encouraged me in this review.
References
- Adedoyin FF, Alola AA, Bekun FV. 2020. An assessment of environmental sustainability corridor: The role of economic expansion and research and development in EU countries. Sci Total Environ, 713: 136726.
- Akov E. 2015. The politics of fuel subsidy removal in Nigeria. African Stud Rev, 58(1): 35-57.
- Akpa AF, Osabohien R, Ashraf J, Al-Faryan MAS. 2023. Financial inclusion and postharvest losses in West African economic and monetary union. Agri Finance Rev, 83: 320-332.
- Alemzero DA, Sun H, Mohsin M, Iqbal N, Nadeem M, Vo XV. 2021. Assessing energy security in Africa based on multidimensional approach of principal composite analysis. Environ Sci Pollut Res, 28: 2158-2171.
- Alghalith M. 2010. The interaction between food prices and oil prices. Energy Econ, 32(6): 1520-1522.
- Arbex M, Perobelli FS. 2010. Impact of economic policies on income distribution: A social accounting matrix analysis. Econ Syst Res, 222: 193-220.
- Arraiz I, Calero C. 2015. From candles to light: The impact of rural electrification. Working Paper No. IDB-WP-599, Inter-American Development Bank, Washington, US.
- Barreto L, Makihira A, Riahi K. 2003. The hydrogen economy in the 21st century: A sustainable development scenario. Int J Hydrogen Ener, 283: 267-284.
- Beblawi H, Luciani G. 1987. The rentier state. Croom Helm, London, UK.
- Bernard J. 2012. Sustainable agriculture and food security: A global perspective. Springer, New York, US.
- Bockris JOM. 2003. Hydrogen economy: Its history. Int J Hydrogen Ener, 28(12): 131-138.
- Bodea C, LeBas A. 2016. The origins of voluntary compliance: Attitudes toward taxation in urban Nigeria. British J Political Sci, 46(1): 215-238.
- Bonan J, Pareglio S, Tavoni M. 2017. Access to modern energy: A review of impact evaluations. Ener Policy, 10(5): 374-388.
- Bradbear C, Friel S. 2013. Integrating climate change, food prices and population health. Food Policy, 43: 56-66.
- Briscoe S. 2019. Library Services for Systematic Reviews. University Press, New York, US.
- Brown M. 2014. Food Security, food prices and climate variability. Routledge, Amsterdam, the Netherlands.
- Buchanan JM. 1978. Cost and choice: An inquiry in economic theory. University of Chicago Press, Chicago, US.
- Buchanan JM. 1978. Opportunity cost. In the new palgrave: A Dictionary of Economics.
- Busnita SS, Oktaviani R, Novianti T. 2017. How far climate change affects the Indonesian paddy production and rice price volatility? Int J Agri Sci, 1(1): 1-11.
- Chakravorty U, Emerick K, Ravago ML. 2016. Lighting up the last mile: The benefits and costs of extending electricity to the rural poor. RFF Discus, 2016: 16-22.
- Chem JK, Taylor R. 2019. Renewable energy transition and economic growth: A case study of Sub-Saharan Africa. Renew Ener, 132: 128-136.
- Cleaver KM. 1993. A Strategy to improve the rural sector in Africa. World Bank Publications.
- Climate Analytics. 2022a. Annual Report. URL= https://ca1-clm.edcdn.com/assets/CA-AnnualReport2022.pdf?v= 1706697264 (accessed date: January 10, 2024).
- Climate Analytics. 2022b. Policy and Science Report: Climate Change Impact in Sub-Saharan Africa.
- Coady D, Parry I, Sears L, Shang B. 2015. How large are global energy subsidies? International Monetary Fund.
- Edafe O, Osabuohien E, Matthew O, Olurinola I, Edafe J, Osabohien R. 2023. Large-scale agricultural land investments and food security in Nigeria. Heliyon, 9: e19941.
- Eluwa SE, Kilanko O. 2024. Biofuel as an alternative for Sub-Saharan Africa’s transition to cleaner energy. Acad Renew Ener, 2024: 1. https://doi.org/10.20935/AcadEnergy6227
- Energy Information Administration. 2023. International Energy Outlook 2023. U.S. Energy Information Administration.
- FAO, IFAD, UNICEF, WFP, WHO. 2022. The state of food security and nutrition in the world 2022: Repurposing food and agricultural policies to make healthy diets more affordable. Rome: FAO.
- FAO. 2011. Energy-smart food for people and climate - Issue Paper. URL= http://www.fao.org/docrep/014/i2454e/i2454e00.pdf (accessed date: January 15, 2024).
- FAO. 2018. The Future of Food and Agriculture: Trends and Challenges. Food and Agriculture Organization of the United Nations.
- FAO. 2023. Renewable energy and agricultural practices. Food and Agriculture Organization of the United Nations. URL= https://sdgs.un.org/un-system-sdg-implementation/food-and-agriculture-organization-fao-54096 (accessed date: January 15, 2024).
- Finley JW, Seiber JN. 2014. Energy use and agricultural productivity. J Agri Food Chem, 62(19): 4537-4545.
- Godfray HCJ, et al. 2010. Food security: The challenge of feeding 9 billion people. Science, 327.5967: 812-818.
- Gregory J, Sovacool BK. 2019. The financial risks and barriers to electricity infrastructure in Kenya, Tanzania, and Mozambique: A critical and systematic review of the academic literature. Ener Policy, 12(9): 134-146.
- Griggs D, Stafford-Smith M, Gaffney O, Rockström J, Öhman MC, Shyamsundar P, Noble I. 2013. Sustainable development goals for people and planet. Nature, 4957441: 305-307.
- Haggblade S, Hazell P, Reardon T. 1989. The role of agriculture in the economic development of Africa. Agri Econ, 32: 113-132.
- Haile MG, Wossen T, Tesfaye K, von Braun J. 2017. Impact of climate change, weather extremes, and price risk on global food supply. Econ Disasters Climate Change, 1: 55-75.
- Harberger AC. 1972. On measuring the social opportunity cost of public funds. Springer, Berlin, Germany, pp: 24-48.
- Hertog S. 2017. The political economy of distribution in the Middle East: Is there scope for a new social contract? Palgrave Macmillan, Boston, US, pp: 235.
- Higgins JPT, Green S. 2011. Cochrane handbook for systematic reviews of interventions. Wiley-Blackwell, Chichester, UK.
- Higgins JPT, Thompson SG. 2002. Quantifying heterogeneity in a meta-analysis. Stat Medic, 21(11), 1539-1558.
- HLPE. 2021. High-Level Panel of Experts on Food Security and Nutrition of the Committee on World Food Security: Promoting youth engagement and employment in agriculture and food systems Rome. URL= https://www.fao.org/3/cb5464en/cb5464en.pdf (accessed date: January 06, 2024).
- Hussain A. 2015. A planet in peril and a civilization in crisis: Reviving a sense of the sacred. The Second Loyola Hall Symposium, Lahore, India, pp: 19-30.
- Ikuemonisan ES, Akinbola AA. 2019. Welfare effects of transportation cost and food price volatility in the context of globalization in Nigeria. African J Food Scie, 13(6): 111-119.
- Intergovernmental Panel on Climate Change. 2022. Climate change 2022: Mitigation of climate change – Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, New York, US, pp: 264.
- International Energy Agency, International Renewable Energy Agency, United Nations Statistics Division, World Bank, & World Health Organization. 2022. Tracking SDG 7: The energy progress report 2022. Washington, DC: World Bank. https://trackingsdg7.esmap.org/ (accessed date: January 16, 2024).
- International Energy Agency (IEA). 2014. Africa energy outlook: A focus on energy prospects in sub-Saharan Africa. Paris: International Energy Agency. https://www.iea.org/reports/africa-energy-outlook-2014 (accessed date: January 24, 2024).
- International Energy Agency (IEA). 2020. World energy outlook 2020. URL= https://jpt.spe.org/ (accessed date: January 06, 2024).
- International Energy Agency (IEA). 2021a. Renewable energy market update 2021. URL= https://jpt.spe.org/ (accessed date: January 06, 2024).
- International Energy Agency (IEA). 2021b. World energy outlook 2021. Paris: International Energy Agency. https://www.iea.org/reports/world-energy-outlook-2021 (accessed date: January 24, 2024).
- International Energy Agency (IEA). 2022. Africa energy outlook 2022. Paris: International Energy Agency. https://www.iea.org/reports/africa-energy-outlook-2022 (accessed date: January 24, 2024).
- International Renewable Energy Agency. 2019. Renewable energy: A gender perspective. International Renewable Energy Agency.
- International Renewable Energy Agency. 2020. Global renewables outlook: Energy transformation 2050. International Renewable Energy Agency.
- International Renewable Energy Agency (IRENA). 2022. Renewable capacity statistics 2022. Abu Dhabi: International Renewable Energy Agency. https://www.irena.org/Publications/2022/Mar/Renewable-Capacity-Statistics-2022 (accessed date: January 24, 2024).
- Jeuland M, Baker E, Lee D. 2021. Renewable energy and agriculture: Opportunities and challenges for sustainability. Renew Ener, 152: 1-12. https://doi.org/10.1016/j.renene.2020.09.051
- Jones A, Smith B, Brown C. 2017. Definitions and terminologies in energy transition research. Ener Pol, 109: 83-91.
- Kalyani VL, Dudy MK, Pareek S. 2015. Renewable energy: The need of the world. J Manag Eng Info Technol, 2(5): 18-26.
- Lagi M, Bar-Yam Y, Bertrand KZ, Bar-Yam Y. 2012. Economics of food prices and crises. New England Complex Systems Institute (NESCI), Cambridge, UK.
- Lankoski J, Thiem A. 2020. Linkages between agricultural policies, productivity and environmental sustainability. Ecol Econ, 176: 106700. https://doi.org/10.1016/j.ecolecon.2020.106700
- Lee D, Baker E, Jeuland M. 2020. Policy reforms and renewable energy in agriculture. Environ Res Lett, 15(8): 085004. https://doi.org/10.1088/1748-9326/ab89d1
- Li Z, Wang J, Zhao Y. 2024. Renewable energy adoption in developing countries: Challenges and opportunities. Renew Sustain Ener Rev, 136: 110431.
- Li Z, Zhang X, Zhang S, Zhang X, Tang F. 2020. Analysis of the energy consumption and carbon emissions of agricultural machinery in China. J Cleaner Prod, 252: 119769.
- Liberati A, Altman DG, Tetzlaff J. 2009. The PRISMA statement for reporting systematic reviews and meta-analyses of studies that evaluate healthcare interventions: Explanation and elaboration. PLoS Medic, 6(7): e1000100.
- Luciani G. 1990. Allocation vs. production states: A theoretical framework in the Arab state. Routledge, London, UK, pp: 65-84.
- Majeed A, Rizvi SZA, Anwar M. 2023a. Renewable energy policies and food security: A global perspective. J Cleaner Prod, 381: 135098. https://doi.org/10.1016/j.jclepro.2022.135098
- Majeed MT, Qaiser F, Hussain MA. 2023b. Fossil fuel consumption, agricultural productivity and environmental sustainability: Evidence from Pakistan. Renew Sustain Ener Rev, 156: 111998.
- Matthew O, Osabohien R, Omosehin OO, Jawaid N, Aderemi T, Olanrewaju O. 2023. Information and communication technology deployment and agricultural value chain nexus in Nigeria. Heliyon, 9: e19043. https://doi.org/10.1016/j.heliyon.2023.e19043
- McCulloch N, Dom R. 2019. Fossil fuel subsidy reform: Mitigating the socio-economic impact. Ener Pol, 131: 356-365.
- McCulloch N, Moerenhout T, Yang J. 2021. Fuel subsidy reform and the social contract in Nigeria: A microeconomic analysis. Ener Pol, 156: 112336.
- Meyer J, von Cramon-Taubadel S. 2004. Asymmetric price transmission: A survey. J Agri Econ, 55(3): 581-611. https://doi.org/10.1111/j.1477-9552.2004.tb00116.x
- Midilli A, Dincer I, Ay M. 2006. Renewable energy strategies for sustainable development. Ener Pol, 34(18): 3623-3633. https://doi.org/10.1016/j.enpol.2005.08.003
- Moher D, Liberati A, Tetzlaff J, Altman DG, the PRISMA Group. 2009. Preferred reporting items for systematic reviews and meta-analyses: The PRISMA statement. PLoS Medic, 6(7): e1000097.
- Nnaji CE, Chukwu JO, Moses PO. 2013. Impact of climate change on agricultural productivity in Enugu State, Nigeria. J Agri Extens Rural Devel, 5(10): 225-231.
- Nucho J. 2022. Energy transitions in sub-Saharan Africa: Policy pathways and economic implications. J Ener Res, 45(5): 789-804.
- OECD. 2020. OECD Economic Outlook. Organisation for Economic Co-operation and Development.
- Okorie P, Wesseh PK. 2024. The economic consequences of removing petrol subsidies in Nigeria: An input-output analysis. J Pol Modell, 46(2): 299-314.
- Okou C, Spray JA, Unsal MFD. 2022. Staple food prices in sub-Saharan Africa: An empirical assessment. International Monetary Fund. IMF Working Paper. WP/22/135.
- Olaoye T, Ajilore T, Akinluwade K, Omole F, Adetunji A. 2016. Energy crisis in Nigeria: Need for renewable energy mix. Amer J Electrical Electronic Eng, 4(1): 1-8.
- Olujobi OJ, Okorie UE, Olarinde ES, Aina-Pelemo AD. 2023. Legal responses to energy security and sustainability in Nigeria's power sector amidst fossil fuel disruptions and low carbon energy transition. Heliyon, 9(7): e17912.
- Pelletier N, Tyedmers P. 2010. Energy use and greenhouse gas emissions in the food system: A review. Annual Rev Environ Resour, 35: 205-236.
- Peters GP, Sievert M. 2016. The impact of fossil fuels on global agriculture. Nature Climate Change, 6(4): 342-349. https://doi.org/10.1038/nclimate2895
- Peters M, Schneider M, Griesshaber T, Hoffmann VH. 2015. The impact of technology-push and demand-pull policies on technical change – Does the locus of policies matter? Res Pol, 41(8): 1296-1308.
- Pimentel D, Marklein A, Toth MA, Karpoff M, Paul GS, McCormack R, Krueger T. 2008. Biofuel impacts on world food supply: Use of fossil fuel, land and water resources. Energies, 1(2): 41-78.
- Pondie PN, Azadi H, Verhofstadt E, Witlox F. 2019. Energy consumption, agricultural productivity and food security nexus in Africa: Evidence from panel data. Renew Ener, 140: 828-839. https://doi.org/10.1016/j.renene.2019.03.122
- Pondie PN, Azadi H, Witlox F. 2023. Energy access and malnutrition in sub-Saharan Africa: A review. Renew Sustain Ener Rev, 139: 110690. https://doi.org/10.1016/j.rser.2021.110690
- Pueyo A, Maestre M. 2019a. Linking energy access, productive uses, and poverty reduction: A meta-analysis. Ener Pol, 132: 372-383.
- Pueyo A, Maestre M. 2019b. Renewable energy for sustainable agriculture: The case of sub-Saharan Africa. World Devel, 123: 104686. https://doi.org/10.1016/j.worlddev.2019.104686
- Pueyo A. 2018a. Renewable energy and food security in sub-Saharan Africa. Renew Sustain Ener Rev, 90: 200-211.
- Pueyo A. 2018b. What constrains renewable energy investment in sub-Saharan Africa? A comparison of Kenya and Ghana. World Devel, 109: 85-100. https://doi.org/10.1016/j.worlddev.2018.04.008
- REN21. 2020. Renewables 2020 Global Status Report. Renewable Energy Policy Network for the 21st Century. URL= https://www.ren21.net/wp-content/uploads/2019/05/gsr_2020_full_report_en.pdf (accessed date: February 13, 2024).
- Rossignoli D, Balestri S. 2018. Food security and democracy: Do inclusive institutions matter? Canadian J Devel Stud, 39(2): 215-233.
- Sambodo MT, Novandra R. 2019. The relationship between energy consumption and economic growth: Evidence from Indonesia. Energy Sources, Part B: Econ Plann Pol, 14(5): 194-208. https://doi.org/10.1080/15567249.2019.1601291
- Samson R, Mani S, Boddey R, Sokhansanj S, Quesada D, Urquiaga S, Ho Lem C. 2005. The potential of C4 perennial grasses for developing a global BIOHEAT industry. Bpts, 24(5-6): 461-495.
- Sangster AJ. 2011. Mankind’s artificial eco-system. In Warming to Ecocide. Springer, London, UK. https://doi.org/10.1007/978-0-85729-926-0_5
- Searchinger T, Heimlich R. 2015. Avoiding bioenergy competition for food crops and land. Working Paper, Installment 9 of Creating a Sustainable Food Future. Washington, DC: World Resources Institute. URL= http://www.worldresourcesreport.org (accessed date: February 13, 2024).
- Singh R, Ru X. 2022. Fiscal policies and economic development in sub-Saharan Africa. Econ Analysis Pol, 75: 141-150.
- Singh S, Ru J. 2022. Accessibility, affordability, and efficiency of clean energy: A review and research agenda. Environ Sci Pollution Res, 29: 41060-41080. https://doi.org/10.1007/s11356-022-20298-9
- Smith P, Davis S, Creutzig F. 2018. Renewables, efficiency, and lifestyle changes are key to low-carbon climate solutions. Nature Climate Change, 9: 1062-1067.
- Spiller SA. 2011. Opportunity cost consideration. J Consumer Res, 38(4): 595-610. https://doi.org/10.1086/660045
- Stoneman P, Robinson C. 1987. Economic impacts of energy use in agriculture. J Devel Econ, 24(1): 55-70.
- Swinnen J, Kosec K, Hebebrand C, Stedman-Edwards P, Yosef S, Davis C, Zhou Y. 2023. Global food policy report 2023: Rethinking food crisis responses. AGRIS - International System for Agricultural Science and Technology. International Food Policy Research Institute (IFPRI), Washington, US.
- Tilman D, Cassman KG, Matson PA, Polasky S. 2002. Agricultural sustainability and intensive production practices. Nature, 418(6898): 671-677.
- Udi J, Bekun FV, Adedoyin FF. 2020. Modelling the nexus between coal consumption, FDI inflow and economic expansion: Does industrialization matter in South Africa? Environ Sci Pollution Res, 27(10): 10500-10514. https://doi.org/10.1007/s11356-020-07691-x
- UNCTAD. 2023. United Nations Conference on Trade and Development: World investment report 2023: Investing in sustainable energy transition. Geneva: UNCTAD. https://unctad.org/webflyer/world-investment-report-2023 (accessed date: February 23, 2024).
- UNEP. 2019. United Nations Environment Programme: Global environment outlook – GEO-6: Healthy planet, healthy people. United Nations Environment Programme.
- van Asselt H, Moerenhout T, Verkuijl C. 2022. Using the trade regime to phase out fossil fuel subsidies. Edward Elgar Publishing, London, UK, pp: 180-201.
- Vincent A, Okowa M. 2022. Agricultural development and economic diversification as strategies for stabilizing food prices in sub-Saharan Africa. J Agri Econ Devel, 10(4): 150-166. https://doi.org/10.5897/JAED2022.0805
- von Grebmer K, Bernstein J, Geza W, Ndlovu M, Wiemers M, Reiner L, Fritschel H. 2023. Global hunger index: The power of youth in shaping food systems. Welthungerhilfe, Bonn, Germany, pp: 56.
- Woods J, Williams A, Hughes JK, Black M, Murphy R. 2010. Energy and the food system. Philosophical Transactions of the Royal Society B: Biol Sci, 365(1554): 2991-3006.
- World Bank. 2014. Climate-smart agriculture: A call to action. The World Bank, https://documents.worldbank.org/en/publication/documents-reports/documentdetail/992021468197391264/climate-smart-agriculture-a-call-to-action (accessed date: February 23, 2024).
- Yang S, Hu S, Wang S, Zou L. 2020. Effects of rapid urban land expansion on the spatial direction of residential land prices: Evidence from Wuhan, China. Habitat Int, 101: 102186.
- Zhao X, Liu J, Tang W, Zhu C. 2022. Fossil fuels in agricultural systems: Insights from sustainable development. Energy, 238: 121802.