Energy Use in Agriculture: A Modeling Approach to Evaluate Energy Reduction Policies
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Agricultural production requires significant input of fossil fuels and other energy sources leading to
negative external effects like emissions of CO2. Measures to discourage energy consumption in the
agricultural sector are contemplated upon and might increase costs of production activities. At the
same time, energy cost rise due to market developments, also affecting the relative competitiveness of
agricultural activities in favor of low energy input sub-sectors. Increasing energy related cost could
reduce total energy consumption, but the extent of the reduction is uncertain.
The effects of increasing energy costs in EU27 on market quantities and prices as well as energy use
in the agricultural sector will be investigated using the agricultural sector model CAPRI which was
recently extended by an energy indicator related to production activities. This paper intends to
demonstrate the functionality of a large scale agricultural sector model in simulations with respect to
energy use.