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Impacts of energy prices and trade-demand elasticities on Saskatchewan agriculture

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  • Tewari, Devi D.
  • Kulshreshtha, Suren N.
  • Schmitz, A.

Abstract

With the help of a quadratic programming sector model of Saskatchewan agriculture, it is demonstrated that magnitudes or rising energy-price impacts can be significantly different if producers face different levels of trade-demand elasticities. Although consumers would always lose as a result of rising energy prices under varying demand elasticities, this is not always the case with producers. Net returns to producers may increase even under a rising energy-price regime if they face very inelastic markets. Similarly, other energy price impacts are shown to differ significantly under varying demand elasticities.

Suggested Citation

  • Tewari, Devi D. & Kulshreshtha, Suren N. & Schmitz, A., 1989. "Impacts of energy prices and trade-demand elasticities on Saskatchewan agriculture," Energy, Elsevier, vol. 14(11), pages 737-746.
    • Handle: RePEc:eee:energy:v:14:y:1989:i:11:p:737-746
    DOI: 10.1016/0360-5442(89)90007-8
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    References listed on IDEAS

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    1. Spriggs, John, 1981. "An Economic Analysis of Canadian Grains and Oilseeds," Technical Bulletins 157275, United States Department of Agriculture, Economic Research Service.
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