Energy intensity in European Union agribusiness: Identifying hotspots and rebound effects

This study examines changes in energy intensity across the agribusiness sector in EU countries from 2014 to 2022, aiming to identify key areas referred to as “hotspots”, characterized by disproportionately high energy use relative to economic output. Energy intensity was assessed using energy consumption per unit of GDP, across four stages of the agribusiness production chain: two indirect (agriculture and food industry provisioning) and two direct (agriculture and food processing). The results reveal substantial variation in energy intensity across countries and production stages, with direct stages being consistently more energy-intensive. While the average energy intensity of EU agribusiness declined by approximately 9.3% over the study period, it did not always result in a reduction in overall energy use. In many cases, increased production offsets potential savings, resulting in a rebound effect, or, in extreme cases, a backfire effect in which total energy use increases despite lower energy intensity. The analysis identifies energy intensity hotspots mainly in the agriculture and food industry sectors, particularly in Eastern and Northern European countries. These findings emphasize that reductions in energy intensity alone are insufficient to reduce total energy consumption, as structural and production-scale factors can counteract improvements in intensity. Thus, the findings suggest that agricultural policy should place greater emphasis on absolute reductions in energy use than on improvements in energy intensity alone. Public support schemes and technology-oriented measures, including precision and digital tools, may contribute to this objective if they are linked to verified energy savings and designed to limit rebound effects.