Economic Implications of Renewable Energy Adoption in Logistics and Its Impact on Transportation Costs and Food Price Inflation

The transition to renewable energy in logistics is increasingly recognized as a crucial step toward sustainability. However, its economic implications, particularly on transportation costs and food price inflation, remain underexplored. This study examines the relationship between renewable energy adoption, logistics costs, and food price inflation using descriptive statistics, correlation analysis, time-series modelling (ARIMA, VAR), multiple linear regression, and Granger causality tests. The findings indicate that renewable energy adoption leads to short-term increases in logistics costs due to infrastructure investments, though long-term benefits may materialize. A strong positive correlation was found between renewable energy adoption and food price inflation, suggesting that green logistics integration could drive initial cost surges. The Granger causality test confirmed that renewable adoption influences logistics costs but does not directly cause food price inflation, implying the role of additional macroeconomic factors. Policy interventions, such as targeted subsidies, infrastructure investments, and gradual transition strategies, are recommended to balance sustainability with economic stability. This research contributes to the growing body of literature on sustainable logistics and offers insights for policymakers and industry stakeholders.