Impact of 'Ecoflation' on Cereal Prices

Analysis of the Ecoflation scenario shows a significant impact on the cost of commodities, due to a variety of factors including climate policy, climate change (and increased water scarcity), deforestation, and biofuel policy. This chart shows the projected impact of each of these policy drivers on prices of cereal commodities. For simplicity, the analysis focuses on wheat and corn as the primary drivers of cereal markets.