The Economic Impact of Renewable Energies on Italian Agricultural Firms

Abstract

Sustainability and energy efficiency have become increasingly important issues in modern society. The transition to a more sustainable and low carbon energy system is a priority for the whole world. The main goal of the research is to analyze the economic impact of renewable energies on the Italian agricultural sector. The thesis could be useful to companies and investors looking to introduce renewable energy investments to their businesses. Every member of the European Union is committed to achieve net-zero greenhouse gas emissions by 2050. The EU energy strategy defines the nation's objectives for sustainable energy production and consumption. This plan aims to encourage energy efficiency measures and boost the proportion of renewable energy sources. Furthermore, every member state monitors the transition to green energy, assessing outcomes and implementing governmental assistance when needed. On the other hand, Italian agriculture, being also a key sector of the Italian economy, embodies resilience even when economic scenarios are not the best. Agriculture, however, also makes a sizable contribution to greenhouse gas emissions, primarily through the raising of animals, transportation, and fertilizer use. Agricultural businesses can lessen their reliance on fossil fuels, minimize their carbon footprint, and make returns from energy generation by implementing renewable energy technologies such as solar, wind, and biomass. The thesis is organized into three chapters. The first chapter provides a background of the energy market, introducing the climate change problem and all the regulations implemented in order to reach the Net Zero goals by 2050. The second chapter examines the historical context of agriculture, the policy and regulatory frameworks, and the economic performance and major trends of the sector. Both chapters present a focus on Italy and its main challenges nowadays. The third chapter highlights the economic relationships between renewable energies and agricultural firms. This interplay is explained by providing an empirical analysis and by taking into consideration the net income and current costs of Italian agricultural firms. In conclusion, the results of this study can inform policymakers and stakeholders for future planning and decision-making towards achieving sustainable development goals in Italy and worldwide.