
Dynamic Effects on Global Food Prices: Climate Change, Energy Costs, Geopolitical Risks, and Maritime Transportation
Chapter from the book:
Konat,
G.
&
Koncak,
A.
(eds.)
2025.
Theoretical and Empirical Analyses With Traditional and Contemporary Econometric Approaches.
Synopsis
This study investigates the dynamic effects of climate change, energy costs, geopolitical risks, and maritime transportation costs on global food prices using wavelet coherence analysis for the period from January 1990 to July 2024. The analysis reveals the time-varying relationships among these factors, highlighting periods of strong coherence particularly during major events such as disruptions in the Panama and Suez Canals, energy price shocks, and extreme weather conditions associated with climate change. The results indicate that rising maritime costs, driven by canal disruptions and higher energy prices, have significantly contributed to food price inflation. Furthermore, climate-related events such as droughts and heatwaves have reduced agricultural productivity, thereby amplifying food price volatility. These findings emphasize the interconnected nature of food prices with environmental and geopolitical factors, underlining the need for strategic policy interventions aimed at addressing these vulnerabilities—such as promoting climate-resilient agriculture, enhancing energy efficiency, and securing critical trade routes.