141 million people could face poverty as a result of rising energy prices
This is the conclusion of a study published in the journal Nature Energy
The energy crisis triggered by Russia’s war in Ukraine could push 141 million people worldwide into extreme poverty, according to a new report published Thursday in the journal Nature Energy.
Researchers from the Netherlands, the United Kingdom, China and the United States modeled the impacts of increased energy prices in 116 countries and found household spending increased up to 4.8% on average, as coal and natural gas prices surged after Russia’s invasion of Ukraine, adding to post-pandemic increases.
In low-income countries, the report said poorer households already facing severe food shortages were at greater risk of poverty due to higher energy costs. Households in higher income countries also felt the impact of rising energy prices but were more likely to be able to absorb them into household budgets, the report said.
And some countries are more exposed than others – for example, increases in energy costs in Estonia, Poland and the Czech Republic are above the global average, mainly because those countries rely more on energy-intensive industries. Poland in particular relied on coal for 68.5% of its energy generation, as of 2020.
Energy price hikes caused by the crisis in Ukraine have also resulted in the increased cost of necessities like food. Compared to a year ago, in the US the prices of eggs went up 70.1%, margarine 44.7%, butter 26.3%, flour 20.4%, bread 14.9%, sugar 13.5%, milk 11%, chicken 10.5% and, together, fruit and vegetable prices increased 7.2%, according to inflation data released by the Bureau of Labor Statistics this month.
And consumer goods companies say prices are unlikely to fall any time soon.
The energy crisis triggered by Russia’s war in Ukraine could push 141 million people worldwide into extreme poverty, according to a new report published Thursday in the journal Nature Energy.
Researchers from the Netherlands, the United Kingdom, China and the United States modeled the impacts of increased energy prices in 116 countries and found household spending increased up to 4.8% on average, as coal and natural gas prices surged after Russia’s invasion of Ukraine, adding to post-pandemic increases.
In low-income countries, the report said poorer households already facing severe food shortages were at greater risk of poverty due to higher energy costs. Households in higher income countries also felt the impact of rising energy prices but were more likely to be able to absorb them into household budgets, the report said.
And some countries are more exposed than others – for example, increases in energy costs in Estonia, Poland and the Czech Republic are above the global average, mainly because those countries rely more on energy-intensive industries. Poland in particular relied on coal for 68.5% of its energy generation, as of 2020.
Energy price hikes caused by the crisis in Ukraine have also resulted in the increased cost of necessities like food. Compared to a year ago, in the US the prices of eggs went up 70.1%, margarine 44.7%, butter 26.3%, flour 20.4%, bread 14.9%, sugar 13.5%, milk 11%, chicken 10.5% and, together, fruit and vegetable prices increased 7.2%, according to inflation data released by the Bureau of Labor Statistics this month.
And consumer goods companies say prices are unlikely to fall any time soon.