Renewable Energy Transition in Agribusiness: A Deep Dive into the Rebound Effect in Latin America

Strategic Insights -

Research on the renewable energy transition in agribusiness has intensified due to growing climate change concerns. A new study conducted in five Latin American countries, including Brazil, Argentina, Uruguay, Colombia, and Mexico, has examined the rebound effect in the energy transition of the agricultural sector. The study found that the rebound effect significantly influences energy transition, with varying degrees of impact across agricultural sectors.

Key Takeaways:

  • The study used the Double-Log regression model with bootstrap resampling to examine the rebound effect in the energy transition of agribusiness, focusing on five Latin American countries.
  • The findings revealed that the rebound effect significantly influences energy transition, with varying degrees of impact across agricultural sectors.
  • Partial rebound effect was identified across all five countries, with elasticity coefficient varying from 9.63% (Colombia's coffee sector) to 89.12% (Brazil's livestock sector).
  • In Brazil's sugarcane sector, non-renewable energy, agricultural employment, and irrigation efficiency were identified as key factors influencing energy consumption, while in livestock sector, energy consumption was affected by CH4 emissions, income, and well-being of farmers, water consumption, and water conservation practices.
  • In Mexico's livestock sector, CH4 emissions, non-renewable energy, and water conservation practices were the key factors affecting energy consumption.
  • In Argentina's sugarcane sector, pesticides, NO2 emissions, renewable energy, and agricultural employment were the key factors affecting energy consumption, while renewable energy, income, and well-being of farmers, and water consumption were the key factors affecting energy consumption in livestock sector.
  • In Uruguay's livestock sector, non-renewable energy, income, and well-being of farmers, and irrigation efficiency were the key factors affecting energy consumption.
  • The study concluded that the energy transition in agribusiness should align with Sustainable Development Goals (SDGs) to avoid increasing energy consumption and environmental degradation.

Statistics:

  • The study covered five Latin American countries: Brazil, Argentina, Uruguay, Colombia, and Mexico.
  • The agricultural sector data used in the study spanned 2010-2022.
  • The elasticity coefficient ranged from 9.63% (Colombia's coffee sector) to 89.12% (Brazil's livestock sector).
  • Non-renewable energy was identified as a key factor in five out of six sectors.
  • The percentage of energy consumption affected by CH4 emissions in Brazil's livestock sector was 15.63%.
  • The percentage of energy consumption affected by water consumption in Mexico's livestock sector was 9.21%.

Sources:

  • NewsRx LLC. Research in the Area of Renewable Energy Reported from Federal University Alfenas (Challenges and opportunities in the energy transition of agribusiness: A deep dive into the rebound effect in Latin America). Ecology, Environment & Conservation. August 8, 2025; p 792.
  • Challenges and opportunities in the energy transition of agribusiness: A deep dive into the rebound effect in Latin America. Regional Sustainability, 2025,6(3):100225.