16 January 2024 | Huong Nguyen, Marcus Randall, Andrew Lewis
This paper systematically reviews the factors affecting crop prices in the context of climate change over the past decade. The review highlights the critical role of climate change in influencing agricultural production and food security. Key factors affecting crop prices include climate elements (temperature, precipitation, and carbon dioxide concentration), biofuel policies and production, supply-side factors (energy/oil prices, water supply, technology), and demand-side factors (population, income, inflation, and exchange rate). The findings indicate that climate change has led to an overall increase in crop prices due to decreasing yields, particularly from changes in temperature and rainfall. Biofuel production and policies have also had both short-term and long-term effects on crop prices, with the latter being more significant. Supply-side factors such as energy/oil prices, water supply, and technology have varying impacts on crop prices, while demand-side factors like income and population have become increasingly important drivers. The review emphasizes the need for comprehensive models that incorporate climate change and market-based factors to improve the accuracy of crop price forecasting and inform policy decisions to enhance food security.This paper systematically reviews the factors affecting crop prices in the context of climate change over the past decade. The review highlights the critical role of climate change in influencing agricultural production and food security. Key factors affecting crop prices include climate elements (temperature, precipitation, and carbon dioxide concentration), biofuel policies and production, supply-side factors (energy/oil prices, water supply, technology), and demand-side factors (population, income, inflation, and exchange rate). The findings indicate that climate change has led to an overall increase in crop prices due to decreasing yields, particularly from changes in temperature and rainfall. Biofuel production and policies have also had both short-term and long-term effects on crop prices, with the latter being more significant. Supply-side factors such as energy/oil prices, water supply, and technology have varying impacts on crop prices, while demand-side factors like income and population have become increasingly important drivers. The review emphasizes the need for comprehensive models that incorporate climate change and market-based factors to improve the accuracy of crop price forecasting and inform policy decisions to enhance food security.