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Does Climate Change and Energy Consumption Affect the Food Security of European Union Countries? Empirical Evidence from a Panel Study

Irena Łącka, Błażej Suproń (bsupron@zut.edu.pl) and Iwona Szczepaniak
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Irena Łącka: Faculty of Economics, West Pomeranian University of Technology, 70-310 Szczecin, Poland
Błażej Suproń: Faculty of Economics, West Pomeranian University of Technology, 70-310 Szczecin, Poland
Iwona Szczepaniak: Department of Agribusiness and Bioeconomy, Institute of Agricultural and Food Economics-National Research Institute, 08140 Warsaw, Poland

Energies, 2024, vol. 17, issue 13, 1-26

Abstract: This study aims to provide empirical evidence on whether using renewable and non-renewable energy, CO 2 emissions, and the resulting changes in temperature and precipitation can alter cereal yields in European Union countries. To this end, a panel data set covering 1992–2021 has been used to analyse the impact of climate change and economic factors on cereal production in European Union countries. The study employed various analytical techniques to better understand the impact of climate change and economic factors on cereal crop yields. These included using annual average temperature and rainfall to measure climate change, energy consumption, and economic growth to analyse the economic aspects. To achieve the objective, feasible generalised least squares (FGLS) models with robust standard errors and bootstrap and a quantile regression (QR) model with marginal analysis were employed. The Westerlund cointegration test confirmed the presence of cointegration between cereal production and climate variables, economic growth, and energy consumption. The results indicate that increases in temperature and precipitation may contribute to increased cereal production in European Union countries. In contrast, energy consumption, including renewable energy and CO 2 emissions, may have a nonlinear effect on cereal production. Quantile regression analysis suggests climate change may impact crop yields most in countries with low and moderate cereal production per hectare. Increased CO 2 emissions may increase yields in the initial period, but excessive CO 2 may negatively impact cereal production in the long term. It would be advisable for countries with low and moderate crop productivity to consider implementing technological advances and combating global warming by modernising cultivation methods and making greater use of renewable energy sources.

Keywords: cereal production; climate change; European Union; FGLS; CO 2; energy; food security; panel data (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
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