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Dynamic adjustments in the Dutch greenhouse sector due to environmental regulations AgEcon
Verreth, Daphne M.I.; Emvalomatis, Grigorios; Bunte, Frank H.J.; Oude Lansink, Alfons G.J.M..
Horticultural firms are dependent on energy to produce, while policy makers focus on reducing the use of energy and investment in energy-saving technologies. The paper aimed to asses Dutch greenhouse farmers‘ responses to policies that would affect prices of different energy inputs. The farmer’s behaviour is modelled in two steps: firms are assumed to maximize profit at given energy use level, and firms are assumed to minimize the discounted sum of energy costs. The model is estimated using farm survey data spanning the period 2001-2008. Short-run and long-run elasticities with respect to prices and investments in energy-using technology are estimated. The greenhouse sector shows a fast adjustment of energy capital towards its long-run equilibrium. This...
Tipo: Conference Paper or Presentation Palavras-chave: Greenhouse horticulture; Energy; Dynamic duality; Adjustment costs; Agricultural and Food Policy; C51; C61; D92; Q12; Q18; Q48..
Ano: 2011 URL: http://purl.umn.edu/99364
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Dynamic and static behaviour with respect to energy use and investment of Dutch Greenhouse firms AgEcon
Verreth, Daphne M.I.; Emvalomatis, Grigorios; Bunte, Frank H.J.; Oude Lansink, Alfons G.J.M..
Dutch greenhouse horticultural firms are energy-intensive and major emitters of greenhouse gases. This paper develops a theoretically consistent model that is able to describe the greenhouse firms` behaviour regarding energy use and investments in energy technology. The behaviour of the firm is modelled using a combination of a dynamic cost function and a static profit function framework. This paper derives the optimal quantity of energy and energy capital from the link between these two functions. The model is applied to a panel of 97 Dutch greenhouse firms over the period 2001-2008. The results show that most Dutch greenhouse firms shift from being net electricity users to net electricity producers in the long run. Investing in energy capital contribute...
Tipo: Presentation Palavras-chave: Greenhouse horticulture; Energy; Dynamic duality; Short-run marginal cost; Adjustment costs; Production Economics; Resource /Energy Economics and Policy.
Ano: 2012 URL: http://purl.umn.edu/123508
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