Agriculture Reference
In-Depth Information
Firstly, the actual intensities are decomposed in between and
within effects, using equation (5.6). In a second step, the different elements
of the estimated intensities are composed with equation (5.7). It is worth
noting that although labour and land intensities are measured in different
units, their contributions to energy and energy-based inputs intensities are
measured in the latter intensities units.
Table 5.5 shows the actual changes in energy intensity and their
estimated decompositions for EU agriculture. Differences between actual
ratios and the sum of their components are due to random effects in the
estimated equations. There is a small decline in energy intensity, mainly in
the period following the oil crisis at the beginning of the 80s. The results
indicate that the lion's share is due to the 'within' element or true intensity
changes. However, the trend effect is toward energy intensification, and
this effect has dominated since the mid-80s. Except for land, only Italy and
Sweden show an evolution of effects qualitatively similar to the aggregate.
The pattern in Ireland and Denmark is very different from the average.
In Table 5.6, the changes in energy based inputs intensity for the
aggregate EU agriculture are summarised. Again, the within decomposition
accounts for most of the total effect. Here, the trend is negative, as are the
effects of land and capital. However, energy-based inputs are substituted
for labour, increasing the energy-based intensity. The general effect is
negative, mainly in the nineties. It is remarkable that no country presents
the same effect pattern as the EU aggregate qualitatively, i.e. considering
the signs.
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