Agriculture Reference
In-Depth Information
The SML-estimates in Table 4.2 support, but not on very strong
statistical grounds, that increasing energy prices increase the probability of
adoption of co-generator with storage but decrease the probability of
adoption of energy storage. A priori it was expected that increasing energy
prices encourage investments in both energy saving technologies. The
result that storage investments are decreasing in energy prices is, in fact, an
indication that investments in co-generators become more appealing when
energy prices increase. More than half (55%) of the vegetable farms that
switched to co-generator during the study period already had energy
storage. Therefore, increasing energy prices may decrease the probability
of adopting storage combined with traditional heating because firms are
then more eager to switch into (more energy saving) co-generators. Thus,
the results implies that increasing energy prices,
e.g.
through a tax on
energy encourage firm operators to invest in technologies that are relatively
more energy saving (
i.e.
co-generators).
The estimates in Table 4.2 also suggest that the firm's capital stock
and its allocation has significant effects on investments in energy saving
technologies. The probability of adopting energy saving heating
technologies decreases significantly with capital in structures, such as glass
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