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Energy Use in Agriculture: A Modeling Approach to Evaluate Energy Reduction Policies

  • Kempen, Markus
  • Kraenzlein, Tim
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    Agricultural production requires significant input of fossil fuels and other energy sources leading to negative external effects like emissions of CO2. Measures to discourage energy consumption in the agricultural sector are contemplated upon and might increase costs of production activities. At the same time, energy cost rise due to market developments, also affecting the relative competitiveness of agricultural activities in favor of low energy input sub-sectors. Increasing energy related cost could reduce total energy consumption, but the extent of the reduction is uncertain. The effects of increasing energy costs in EU27 on market quantities and prices as well as energy use in the agricultural sector will be investigated using the agricultural sector model CAPRI which was recently extended by an energy indicator related to production activities. This paper intends to demonstrate the functionality of a large scale agricultural sector model in simulations with respect to energy use.

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    Paper provided by European Association of Agricultural Economists in its series 107th Seminar, January 30-February 1, 2008, Sevilla, Spain with number 6652.

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    Date of creation: 2008
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    Handle: RePEc:ags:eaa107:6652
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