GCRI · Economic Development

Food energy water economics

Food, energy and water are inputs to every sector and large shares of household budgets in poorer countries. Their prices, markets, subsidies and investment shape growth, inflation, poverty and fiscal balances, and they are linked to each other. This page sets out how these resource markets affect development, how price and access are measured, and what evidence serves the ministries and regulators involved.

01Register

Food energy water economics on the record.

02The question

Food energy water economics: how the risk develops.

Critical cost and livelihood dependencies. The dossier below sets out how the risk develops, what is measured, where the data come from, how it is modelled and who decides.

Mechanism

Food prices dominate poor budgets

Poor households spend a large share of income on food, so food price spikes cut real incomes sharply and can push people into poverty.

Mechanism

Energy prices pass through the economy

Fuel and electricity costs feed into transport, production and food prices, spreading energy shocks across sectors.

Mechanism

Subsidies are costly and regressive

Universal fuel and electricity subsidies cost budgets heavily and often benefit wealthier households most. Targeted support costs less per poor household.

Mechanism

Water is underpriced and underinvested

Low tariffs and weak utilities leave water infrastructure underfunded, raising costs for those served by vendors and reducing reliability.

03Geography

Water now in Africa.

Night lights, population density, flood water and true-colour imagery over Africa, from NASA GIBS. Each layer carries its own date.

The interactive map needs JavaScript; the layer list and sources are below.

Layers 4

Water now, for this page

Latest available

NASA GIBS / EOSDIS · ASTER GDEM (METI, NASA) · Blue Marble (NASA) · © OpenStreetMap contributors (ODbL) · Natural Earth

Loading the latest NASA imagery.

Drag to move. Ctrl or ⌘ and scroll, pinch or the buttons to zoom; hover for the values under the pointer; reset returns to the region.

Water now, framed on Africa.Satellite and model products as NASA publishes them, each with its own date. They are indicators, not assessments of any place.

Data: NASA GIBS · ASTER GDEM · Blue Marble · © OpenStreetMap contributors · Natural Earth · NASA EONET · NASA HLS S30Sources and licences

  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • VIIRS Black Marble night-time lights, NASA Goddard Space Flight Center; distributed by the NASA Level-1 and Atmosphere Archive and Distribution System (LAADS DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • Center for International Earth Science Information Network (CIESIN), Columbia University. 2018. Gridded Population of the World, Version 4 (GPWv4): Population Density, Revision 11. NASA Socioeconomic Data and Applications Center (SEDAC). Licensed under CC BY 4.0. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). doi:10.7927/H49C6VHW. CC BY 4.0
  • VIIRS near-real-time products (flood, land surface temperature, snow cover, corrected reflectance), NASA LANCE; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • SMAP Level 4 soil moisture and snow mass, NASA Global Modeling and Assimilation Office; distributed by the NASA National Snow and Ice Data Center DAAC; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • MODIS land products (vegetation indices, gross primary production, land cover), NASA LP DAAC and LANCE; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • ASTER GDEM is a product of METI and NASA (ASTER Global Digital Elevation Model V003, NASA LP DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). Cite as: NASA/METI/AIST/Japan Spacesystems and U.S./Japan ASTER Science Team (2019). ASTER Global Digital Elevation Model V003. doi:10.5067/ASTER/ASTGTM.003. NASA open data
  • Made with Natural Earth. Free vector and raster map data @ naturalearthdata.com. Public domain
  • © OpenStreetMap contributors (ODbL), via NASA GIBS (coastlines, boundaries, roads and place names). Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). ODbL
  • Blue Marble, NASA Earth Observatory; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • Context on the globe and flat map: coastlines, boundaries, roads and place names from NASA GIBS reference layers (OpenStreetMap data, ODbL, © OpenStreetMap contributors); Blue Marble imagery as an optional base; 3D terrain and the elevation read-out from the ASTER GDEM elevation colour index (5 m to 200 m classes, exaggerated for legibility). Boundaries are drawn as published and imply no position on any territory.
  • Live events: NASA Earth Observatory Natural Event Tracker (EONET); events are indicative and keep their original source links.
  • Live: NASA EONET Events are indicative, not authority warnings.
  • Observed (EO): NASA HLS S30 (contains modified Copernicus Sentinel data 2026). We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS).
  • NASA GIBS: We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS).
  • River discharge forecast, 30 days with range (GloFAS via Open-Meteo): Contains modified Copernicus Emergency Management Service information 2026; not a flood warning.
  • Past year, daily temperature (ERA5 via Open-Meteo): Contains modified Copernicus Climate Change Service information 2026.
  • Past year, daily temperature and sunshine (NASA POWER): These data were obtained from the NASA Langley Research Center (LaRC) POWER Project funded through the NASA Earth Science/Applied Science Program..
  • Weather data by Open-Meteo.com (https://open-meteo.com/), licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/).
  • Optional layers (14 sources in the layer list: live, forecast, observed and context) print their provider credit on the map and here when switched on; forecasts are model output and derived indices are estimates.

Layers and dates

  • Night-time lights, daily: VIIRS Black Marble (VNP46A2), NASA LAADS DAAC · 12 Oct 2026
  • Population density, 2020: Population: CIESIN, Columbia University, Gridded Population of the World v4.11 (2018), NASA SEDAC, CC BY 4.0 · static
  • Flood water, 3-day composite: VIIRS Global Flood Product, NASA LANCE · 14 Oct 2026
  • True colour: VIIRS NOAA-20 corrected reflectance, NASA LANCE · 13 Oct 2026
  • Root-zone soil moisture, 0 to 100 cm: SMAP Level 4, NASA NSIDC DAAC · 11 Oct 2026
  • Vegetation greenness (NDVI), rolling 8 days: MODIS Terra NDVI, NASA LANCE · 13 Oct 2026

04Across the domains

The economics of the nexus show where costs fall.

05Monitor

Shock propagation model.

The screen a team would use to follow this subject: its measures, states and decisions. Names are examples and values are illustrative.

Shock propagation model

Food energy water economics · National economy · Scenario: import price shock

Output loss above thresholdGCRI · Economic Development

Output impact by channel

Most affected sectors

Food processing▼ 83062Backward
Transport▼ 65411Forward
Construction▼ 44826Backward
Retail▼ 37308Demand

Fiscal room

local units, billions, illustrative

Revenue loss2.2Support measures3.4Contingency reserve1.0 of 2.5 required
Shock propagation model: the screen's structure, terms and states for Food energy water economics.Example names and illustrative values; a design, not a record or a live system.
06Indicators

What is measured, and how well.

Each indicator carries its unit, its cadence, the kind of source behind it and the evidence label a value would carry. No values are shown: a programme supplies them under its own authority.

IndicatorUnitCadenceSource typeLabel
Food inflationpercent change in food consumer pricesmonthlyConsumer price indicesPublished statistics
Share of food in household spendingpercentper surveyHousehold budget surveysESTIMATED
Energy subsidiespercent of GDPannualIMF and IEA estimatesESTIMATED
Electricity accesspercent of populationannualTracking SDG 7ESTIMATED
Water tariff cost recoveryratio of revenue to operating costannualUtility dataREPORTED
Cost of a healthy dietcurrency per person per dayannualFAO and World Bank estimatesESTIMATED
07Simulator

A cascade through interdependent networks.

A hazard footprint takes out co-located assets in every layer; fragmentation, dependency between layers and overload of the survivors then spread the failure. The 3D view separates the layers by depth. Teaching model with stated illustrative values, not a prediction. The map on this page shows Africa; the model itself is not tied to a place.

Controls

Assets per layer
18
Hazard footprint
8% of area
Assets that depend on another layer
60%
Spare capacity (tolerance)
30%

Readouts

Assets hit by the hazard
11%
Assets still working
31%
Amplification of the initial damage
6.2 times
Steps to settle
4
Numbers, methods and sources
StepWater working (%)Power working (%)Telecoms working (%)
09410072
17210044
2398328
3335611
4335011

Methods

  1. Interdependent networks Buldyrev and others (2010), Catastrophic cascade of failures in interdependent networks, Nature 464
  2. Overload cascades Motter and Lai (2002), Physical Review E 66
  3. Betweenness load Brandes (2001), Journal of Mathematical Sociology 25
  4. Multilayer networks Kivela and others (2014), Journal of Complex Networks 2
  5. Infrastructure interdependencies Rinaldi, Peerenboom and Kelly (2001), IEEE Control Systems 21(6)
  6. Uncertainty fan (parameter Monte Carlo) Spiegelhalter, Pearson and Short (2011), Visualising uncertainty about the future, Science 333
  7. One-at-a-time sensitivity (tornado) Saltelli and others (2008), Global Sensitivity Analysis: The Primer, Wiley

Data

The model runs on the teaching values set by the controls. To calibrate it for a place, read it against these admitted layers and series, which this page's map can draw:

  • Major roads Natural Earth
  • Railways Natural Earth
  • Seaports Natural Earth
  • Airports Natural Earth
  • Urban extents Natural Earth
  • Night lights tonight, outages (VIIRS Day/Night Band) NASA/NOAA VIIRS (Suomi NPP) · register nasa.gibs.context-live-layers
  • Natural events (NASA EONET) NASA EONET · register nasa.eonet.events
A cascade through interdependent networks. Illustrative teaching model: it runs on the values set by the controls, not on measured data. Methods: Interdependent networks (Buldyrev and others (2010), Catastrophic cascade of failures in interdependent networks, Nature 464); Overload cascades (Motter and Lai (2002), Physical Review E 66); Betweenness load (Brandes (2001), Journal of Mathematical Sociology 25).
08Sources

Where the evidence comes from.

Named public datasets and institutional records, each with its licence class. Sources by agreement are used only under their terms and never republished.

SourceWhat it givesLicence class
FAOSTAT food price and food security dataPrices and cost of a healthy dietOpen, CC BY 4.0
IMF fossil fuel subsidy estimatesExplicit and implicit energy subsidiesPublic, IMF terms
Tracking SDG 7 reportEnergy access by countryOpen, CC BY 3.0 IGO
IBNET utility dataWater tariffs and cost recoveryPublic, World Bank terms (to check)
National consumer price indicesFood and energy inflationPublic records, licence per statistics office
09Twin and cascade simulator

Model food energy water economics as a system. Run the cascade.

Assembled from the Nexus Standards area profile Financial and economic risk standards: the hazards it names, the systems and sectors that carry the loss, the controls that dampen it and the data that observe it. Choose the components, pick an initiating hazard and step through the cascade. The Map view places the run on an example geography with open data. Every coupling weight is a stated assumption you can change. A teaching model, not a forecast, an assessment or a certification. To model a place of your own choosing, open the full System Builder.

Hazards

  • Sea-level rise
  • Dam failure
  • Coastal flood (set off downstream)
  • Storm surge (set off downstream)
  • High-tide flooding (set off downstream)
  • Coastal erosion (set off downstream)
  • Saltwater intrusion (set off downstream)
  • Estuary flood (set off downstream)
  • River flood (set off downstream)
  • Flash flood (set off downstream)
  • Mass displacement (set off downstream)
  • Coastal habitat squeeze (set off downstream)
  • Wetland loss (set off downstream)
  • Mangrove loss (set off downstream)
  • Groundwater flood (set off downstream)
  • Widespread power outage (set off downstream)
  • Water supply shortfall (set off downstream)
  • Climate-driven migration and relocation (set off downstream)

Controls

  • NS-0 Constitution and principles
  • NS-3 Risk record UNIs (grammar, legacy crosswalk, allocation authority)
  • NS-9 Contextual UNIs (deployments, instances, programme instances)
  • NS-10 Policies and clauses (machine-readable obligations: definition, binding, evaluation and enforcement)
  • NS-11 Verification and monitoring (evidence, attestations, zero-trust conformance observation)
  • NS-14 Conformance and crosswalk to external standards
  • NRS-H59 Hazard family: Economic shocks and governance failure (NHS-1 soc.economic)
  • NRS-H113 Hazard family: Financial-system fragility (NHS-1 soc.financial-system)
  • NRS-H118 Hazard family: Organised crime and illicit economies (NHS-1 soc.crime)
  • NRS-H114 Hazard family: Macroeconomic and fiscal shocks (NHS-1 soc.macro-fiscal)
  • NRS-H61 Hazard family: Cascading failure (NHS-1 sys.cascade)
  • NRS-U27 Universe platform profile: Sovereign Capital Nexus

Observation

  • IMF data services (WEO, IFS, FSI via SDMX) (listed for reference)
  • BIS Data Portal (credit, debt service, property prices, banking statistics) (listed for reference)
  • World Bank Open Data and World Development Indicators API (listed for reference)
  • OECD Data Explorer (SDMX API) (listed for reference)
  • Macroeconomic Dashboard
  • Debt service as a proportion of exports of goods and services
  • Financial Soundness Indicators

Example geography

  • Western Europe: 152 hexagonal cells
  • Night lights tonight, outages (VIIRS Day/Night Band), NASA GIBS
  • Surface water through cloud, 30 m (OPERA DSWx-S1 radar), NASA GIBS
  • Rain rate, last half hour (IMERG), NASA GIBS
  • Vegetation disturbance alerts, 30 m (OPERA DIST-ALERT), NASA GIBS
10Decisions

Who decides, and what the evidence serves.

Economic Development prepares evidence. The decisions below are taken by the authorities named, under their own rules, and never by the platform.

Who decidesThe questionEvidence this page serves
Ministries of finance and energyHow to reform subsidies while protecting the poorSubsidy distribution reviews; incidence analyses
Ministries of agriculture and social protectionHow to respond to food price spikesPrice shock incidence evidence
Water and energy regulatorsHow to set tariffs that fund services and remain affordableCost recovery and affordability evidence

Outputs this topic produces

  • Price shock incidence analyses by household group
  • Subsidy cost and distribution reviews
  • Resource access and affordability profiles
  • Evidence notes on reform options
11Sector signature

The sector signature of food energy water economics.

The sectors food energy water economics touches and how strongly they depend on each other: what a study has to observe and model together.

Select corners · hover lines6 / 15 relations

Signature

Water, Energy and Food

Water gives energy cooling water and hydropower (0.6); water gives food irrigation (0.8): the strongest relations between the sectors this subject joins.

W · E · I · F · H · B

Sectors
4 of 6
Relations
6 of 15
Coupling
0.46 share of total

Strongest relations in play

  • Energy → Infrastructure · power for transport and telecoms0.8
  • Water → Energy · cooling water and hydropower0.6
  • Water → Food · irrigation0.8
  • Infrastructure → Water · pipes, dams and treatment works0.6
Teaching values for a typical city-region, not measurements for any place. Coupling is the summed strength of the relations in play, as a share of all fifteen.
12Core questions

What experts ask about essential costs.

  • How much of household spending goes to food, energy and water, and how does that vary by income?
  • How do price changes in one of these goods affect the others?
  • How do subsidies and tariffs affect fiscal budgets and incentives?
  • Which livelihoods depend directly on agriculture, water and energy?
  • How do climate shocks affect prices and incomes in these sectors?
13Methods and evidence

How food energy water economics is modelled, measured and tested.

The model, its assumptions, its data and its uncertainty, in the form a scientist or engineer would check. Structures follow published methods. The values drawn are illustrative, not findings.

Sensitivity analysis

Which inputs move the result for food energy water economics most, one at a time across their stated ranges.

Hazard intensityExposure valueVulnerability curveCoupling strengthAdaptive capacityData resolutioninput at its low valueinput at its high value
Illustrative one-at-a-time sensitivity; a full analysis adds variance-based (Sobol) indices. Not results.
FAIR guiding principles · GO FAIR and FORCE11W3C PROV · World Wide Web ConsortiumGuidance on consistent treatment of uncertainties · IPCCCEOS Analysis Ready Data · Committee on Earth Observation Satellites
14Mechanisms and drivers

How essential costs shape development.

Poorer households spend a larger share of their income on food and energy, so price increases hit them hardest and can push people into poverty. Rising food prices can reduce nutrition, with long-term effects on health and learning.

The three goods are interlinked. Energy is used to pump and treat water and to produce fertiliser, process and transport food; water is used in agriculture and in many forms of power generation. A shock in one can raise costs in the others.

Many governments subsidise food, fuel or water to protect households. Subsidies can be costly, poorly targeted and hard to reform, and they can encourage overuse. Reform without adequate compensation can cause hardship and unrest.

15Methods and data

Methods and their limits.

  1. 01

    Household budget surveys

    Data on spending patterns by income group. Surveys are infrequent.

  2. 02

    Price transmission analysis

    Studying how prices pass through markets using econometrics. Transmission changes with policy.

  3. 03

    Microsimulation

    Estimating effects of price or subsidy changes on households. Behavioural responses are simplified.

  4. 04

    Coupled sector models

    Linking food, energy and water models with coupled systems modelling. Coupling assumptions matter.

Price data in many markets are incomplete, and informal markets are poorly captured.

16Methods

How it is studied, and what the methods cannot say.

17Where this page's references

Where this page's references lead.

The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.

18Questions

Questions and answers.

Why do food prices matter for poverty?
Because poor households spend a large share of their income on food, so price increases reduce what they can afford most.
Who benefits from fuel subsidies?
Studies by the IMF and others find that universal fuel subsidies often benefit wealthier households most, because they consume more energy.
What is cost recovery in water services?
The extent to which a utility's revenue covers its costs of operating, maintaining and replacing infrastructure.
Why study these three together?
Because they are linked in production and in household budgets, so shocks in one affect the others.
Does the platform take a view on subsidies?
No. It analyses costs, benefits and distributional effects, and leaves choices to governments.
Are livelihoods included?
Yes. Many people earn their living in agriculture, water and energy, and their incomes are part of the topic.
How do climate shocks affect these costs?
Droughts, floods and heat reduce harvests, hydropower and water availability, raising prices and cutting incomes for those who depend on these sectors.
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