The role of energy productivity in U.S. agriculture

V.E. Ball, R. Färe, Shawna Grosskopf and D. Margaritis

Energy Economics, 2015, vol. 49, issue C, 460-471

Abstract: This paper investigates the role of energy on U.S. agricultural productivity using panel data at the state level for the period 1960–2004. We first provide a historical account of energy use in U.S. agriculture. To do this we rely on the Bennet cost indicator to study how the price and volume components of energy costs have developed over time. We then proceed to analyze the contribution of energy to productivity in U.S. agriculture employing the Bennet–Bowley productivity indicator. An important feature of the Bennet–Bowley indicator is its direct association with the change in (normalized) profits. Thus our study is also able to analyze the link between profitability and productivity. Panel regression estimates indicate that energy prices have a negative effect on profitability in the U.S. agricultural sector. We also find that energy productivity has generally remained below total farm productivity following the 1973–1974 global energy crisis.

Keywords: Energy productivity; Bennet–Bowley indicator; Agricultural productivity (search for similar items in EconPapers)
JEL-codes: D20 D24 O40 O47 Q10 Q40 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Working Paper: The role of energy productivity in the U.S. agriculture (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:49:y:2015:i:c:p:460-471

DOI: 10.1016/j.eneco.2015.03.006

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