Agriculture Reference
In-Depth Information
responses to intermediate consumption prices. This is in complete
agreement with the results based on the analysis of inelastic factor
demands and low elasticities of substitution.
For energy based inputs, the conclusions are quite different for
different countries. This is in accordance with the different elasticities for
fertiliser demand found in the literature. Glass and McGillop (1990) find
substitutability between fertilisers and capital for Irish agriculture, and
agrichemicals and capital are found to be complements for Greek
agriculture by Fousekis and Pantzios (1999). In addition, the aggregate
analysis in this chapter finishes in 1993, so it is possible that the described
evolutions for intensities have changed since that date. This is suggested
because the expansion of organic crop production has mainly taken place
with the implementation of EC Regulations 2092/92 and No. 2078/92 on
organic farming.
Two remarks about the ways that the model presented in this
chapter could be further developed. The first is about the method of
forecasting energy intensities in given future dates. The global curvature of
the generalised McFadden form increases the robustness of the
extrapolations since it ensures estimates of future energy intensities that
have theoretically correct base. The second point is that the suggested
approach can be adapted to the multiple output case, following the
characterisation of outputs in Peeters and Surry (2000). Of course, each
country's intensity is the result of both the particular structure of crops and
animal production, and the intensities for each crop and animal production.
The output aggregates used in this chapter, following SPEL, are calculated
in a way similar to the output aggregate in Peeters and Surry. Moreover,
the aggregation used with countries in this chapter can be used for
aggregating separate crops and animal productions in case of input
nonjoinmess.
Finally, the answer to the empirical question formulated in the
introduction is clear. The descriptive analysis in this chapter clearly shows
that there are no common patterns in the use of energy and energy-based
inputs in EU agriculture. General EU-wide proposals for agricultural and
environmental policies are not advisable, because developments in the
relationship between agriculture and energy are highly time- and
country-specific.
ACKNOWLEDGEMENTS
This research has been funded by SEC98-484 of the Spanish DGICYT. I acknowledge the
helpful comments by two referees and the editor.
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