Dynamic and static behaviour with respect to energy use and investment of Dutch Greenhouse firms

Daphne M.I. Verreth; Grigorios Emvalomatis; Frank H.J. Bunte; Alfons  Oude Lansink

Dynamic and static behaviour with respect to energy use and investment of Dutch Greenhouse firms

Daphne M.I. Verreth, Grigorios Emvalomatis, Frank H.J. Bunte, Alfons Oude Lansink

Research output: Contribution to conference › Poster

Abstract

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 to reducing energy, however will increase the quantity of CO2 emissions due to an increase in electricity production.

Original language	English
Number of pages	2
Publication status	Published - 2012
Event	Agricultural and Applied Economics Association 2012 Annual Meeting - Seattle, United States Duration: 12 Aug 2012 → 14 Aug 2012 http://www.aaea.org/2012am

Conference

Conference	Agricultural and Applied Economics Association 2012 Annual Meeting
Country/Territory	United States
City	Seattle
Period	12/08/12 → 14/08/12
Internet address	http://www.aaea.org/2012am

Keywords

Greenhouse horticulture
energy
dynamic duality
short-run marginal cost
adjustment costs
Product

Access to Document

http://ideas.repec.org/p/ags/aaea12/123508.html

1 Article

Dynamic and static behaviour with respect to energy use and investment of Dutch Greenhouse firms
Verreth, D. M. I. (Lead / Corresponding author), Emvalomatis, G., Bunte, F. & Oude Lansink, A. G. J. M., Aug 2014, In: Environmental and Resource Economics. 61, 4, p. 595-614 20 p.
Research output: Contribution to journal › Article › peer-review
1 Citation (Scopus)

Cite this

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title = "Dynamic and static behaviour with respect to energy use and investment of Dutch Greenhouse firms",

abstract = "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 to reducing energy, however will increase the quantity of CO2 emissions due to an increase in electricity production.",

keywords = "Greenhouse horticulture, energy, dynamic duality, short-run marginal cost, adjustment costs, Product",

author = "Verreth, {Daphne M.I.} and Grigorios Emvalomatis and Bunte, {Frank H.J.} and {Oude Lansink}, Alfons",

year = "2012",

language = "English",

note = "Agricultural and Applied Economics Association 2012 Annual Meeting ; Conference date: 12-08-2012 Through 14-08-2012",

url = "http://www.aaea.org/2012am",

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TY - CONF

T1 - Dynamic and static behaviour with respect to energy use and investment of Dutch Greenhouse firms

AU - Verreth, Daphne M.I.

AU - Emvalomatis, Grigorios

AU - Bunte, Frank H.J.

AU - Oude Lansink, Alfons

PY - 2012

Y1 - 2012

N2 - 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 to reducing energy, however will increase the quantity of CO2 emissions due to an increase in electricity production.

AB - 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 to reducing energy, however will increase the quantity of CO2 emissions due to an increase in electricity production.

KW - Greenhouse horticulture

KW - energy

KW - dynamic duality

KW - short-run marginal cost

KW - adjustment costs

KW - Product

M3 - Poster

T2 - Agricultural and Applied Economics Association 2012 Annual Meeting

Y2 - 12 August 2012 through 14 August 2012

ER -

Dynamic and static behaviour with respect to energy use and investment of Dutch Greenhouse firms

Abstract

Conference

Keywords

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Research output

Dynamic and static behaviour with respect to energy use and investment of Dutch Greenhouse firms

Cite this