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Effects of the Renewable Energy Act on structural change in Agriculture- The case of biogas

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  • Appel, Franziska
  • Ostermeyer-Wiethaup, Arlette
  • Balmann, Alfons

Abstract

Biogas production affected agricultural and land markets significantly. This paper provides insights in effects of biogas production on farms and farm structures for the period 2012-2026 in two German regions by using the agent-based simulation model AgriPoliS. We compare the agricultural development in both regions under alternative policy scenarios in order to analyze the effects of biogas production and the impact of the latest amendment in the REA in 2014. Our results show that biogas production provides especially for large farms a profitable income opportunity. However, it implies an increasing dependency of these farms on biogas production and their whole production structures change. Due to an increased competition among farms, rental prices rise. This effect threatens particularly smaller biogas farms. The last amendment of the REA in 2014 with a substantial reduction of the support level attenuates partly some of these effects.

Suggested Citation

  • Appel, Franziska & Ostermeyer-Wiethaup, Arlette & Balmann, Alfons, 2015. "Effects of the Renewable Energy Act on structural change in Agriculture- The case of biogas," 2015 Conference, August 9-14, 2015, Milan, Italy 210956, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:210956
    DOI: 10.22004/ag.econ.210956
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    References listed on IDEAS

    as
    1. Happe, Kathrin & Balmann, Alfons & Kellermann, Konrad & Sahrbacher, Christoph, 2008. "Does structure matter? The impact of switching the agricultural policy regime on farm structures," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 431-444, August.
    2. Christoph Sahrbacher & Amanda Sahrbacher & Alfons Balmann & Arlette Ostermeyer & Franziska Schoenau, 2012. "Capping Direct Payments in the CAP: Another Paper Tiger? Plafonnement des aides directes: simple tigre de papier? Kappung der Direktzahlungen: Noch ein Papiertiger?," EuroChoices, The Agricultural Economics Society, vol. 11(3), pages 10-15, December.
    3. Happe, Kathrin, 2004. "Agricultural policies and farm structures: Agent-based modelling and application to EU-policy reform," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 30, number 14945.
    4. Kathrin Happe, 2005. "Agricultural policies and farm structures - agent-based simulation and application to EU-policy reform," Others 0504011, University Library of Munich, Germany.
    5. Habermann, Hendrik & Breustedt, Gunnar, 2011. "Einfluss der Biogaserzeugung auf landwirtschaftliche Pachtpreise in Deutschland," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 60(02), pages 1-16, May.
    6. Habermann, Hendrik & Breustedt, Gunnar, 2011. "Einfluss der Biogaserzeugung auf landwirtschaftliche Pachtpreise in Deutschland," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 60(2).
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    Cited by:

    1. Heinrich, Florian & Appel, Franziska, 2018. "Adaption Des Agrarstrukturmodells Agripolis Zur Modellierung Außerlandwirtschaftlicher Investoren In Der Biogasproduktion," 58th Annual Conference, Kiel, Germany, September 12-14, 2018 275895, German Association of Agricultural Economists (GEWISOLA).
    2. Appel, Franziska & Balmann, Alfons & Dong, Changxing & Rommel, Jens, 2018. "FarmAgriPoliS: An agricultural business management game for behavioral experiments, teaching, and gaming," IAMO Discussion Papers 271455, Institute of Agricultural Development in Transition Economies (IAMO).
    3. Iván García Kerdan & Sara Giarola & Ellis Skinner & Marin Tuleu & Adam Hawkes, 2020. "Modelling Future Agricultural Mechanisation of Major Crops in China: An Assessment of Energy Demand, Land Use and Emissions," Energies, MDPI, Open Access Journal, vol. 13(24), pages 1-31, December.
    4. De Clercq, Djavan & Wen, Zongguo & Gottfried, Oliver & Schmidt, Franziska & Fei, Fan, 2017. "A review of global strategies promoting the conversion of food waste to bioenergy via anaerobic digestion," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 204-221.
    5. Olena Myrna & Martin Odening & Matthias Ritter, 2019. "The Influence of Wind Energy and Biogas on Farmland Prices," Land, MDPI, Open Access Journal, vol. 8(1), pages 1-14, January.
    6. Heinrich, F. & Appel, F., 2018. "Do investors ruin Germany s peasant agriculture?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277171, International Association of Agricultural Economists.
    7. Brémond, Ulysse & de Buyer, Raphaëlle & Steyer, Jean-Philippe & Bernet, Nicolas & Carrere, Hélène, 2018. "Biological pretreatments of biomass for improving biogas production: an overview from lab scale to full-scale," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 583-604.
    8. Heinrich, Florian & Appel, Franziska & Balmann, Alfons, 2019. "Can land market regulations fulfill their promises?," FORLand Working Papers 12 (2019), Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation".
    9. Alexandra Pehlken & Kalle Wulf & Kevin Grecksch & Thomas Klenke & Nina Tsydenova, 2020. "More Sustainable Bioenergy by Making Use of Regional Alternative Biomass?," Sustainability, MDPI, Open Access Journal, vol. 12(19), pages 1-22, September.
    10. repec:zbw:iamodp:271455 is not listed on IDEAS
    11. Appel, F. & Balmann, A., 2018. "Predator or prey? - Effects of fast-growing farms on their neighborhood," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277358, International Association of Agricultural Economists.
    12. Heinrich, Florian & Appel, Franziska & Balmann, Alfons, 2019. "Can land market regulations fulfill their promises?," EconStor Preprints 208388, ZBW - Leibniz Information Centre for Economics.
    13. Xueqing Yang & Yang Liu & Mei Wang & Alberto Bezama & Daniela Thrän, 2021. "Identifying the Necessities of Regional-Based Analysis to Study Germany’s Biogas Production Development under Energy Transition," Land, MDPI, Open Access Journal, vol. 10(2), pages 1-20, February.

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