Factors Affecting Crop Prices in the Context of Climate Change—A Review

Abstract

Food security has become a concerning issue because of global climate change and increasing populations. Agricultural production is considered one of the key factors that affects food security. The changing climate has negatively affected agricultural production, which accelerates food shortages. The supply of agricultural commodities can be heavily influenced by climate change, which leads to climate-induced agricultural productivity shocks impacting crop prices. This paper systematically reviews publications over the past ten years on the factors affecting the prices of a wide range of crops across the globe. This review presents a critical view of these factors in the context of climate change. This paper applies a systematic approach by determining the appropriate works to review with defined inclusion criteria. From this, groups of key factors affecting crop prices are found. This study finds evidence that crop prices have been both positively and negatively affected by a range of factors such as elements of climate change, biofuel, and economic factors. However, the general trend is towards increasing crop prices due to deceasing yields over time. This is the first systematic literature review which provides a comprehensive view of the factors affecting the prices of crops across the world under climate change.