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By Ekko C. van Ierland and Alfons Oude Lansink

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C. van Ierland and A. ), Economics of Sustainable Energy in Agriculture, 57–72. © 2002 Kluwer Academic Publishers. Printed in the Netherlands. 58 Energy intensity decomposition in EU agriculture country-specific, apart from the dependence on exogenous energy prices, there is less scope for general recommendations. There are many diverse approaches to the analysis of energy intensity. An important body of literature is inter-sectoral as in input-output analysis or computable general equilibrium modelling, which are not reviewed here.

Approximation error can be decreased by using flexible functional forms. However, in the empirical application of this chapter, augmenting the model by quadratic terms resulted in numerical identification problems. 5) is consistent with irreversible and reversible investments, since the estimation method maximizes the likelihood of the observed technology choices. Therefore, the reversibility or irreversibility of investments will show up in the parameter estimates. 5 Other energy saving options available in horticulture at present are heat pump and heat deliveries by electricity plants.

The losses in productivity observed at Marienstein were higher. ) in this context might be reduced by replacing set aside by a productive crop. The design of the new Johannes Moerschner and Wolfgang Lücke 39 rotation seems to be a key issue among all factors determining energy saving through changes in the farming system. The energy analysis has shown, that a site specific flexible reduction in farming intensity, depending on local natural conditions can open interesting potentials for saving (fossil) energy resources and at same time provides additional ecological advantages.

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