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 conferencePoster

    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 languageEnglish
    Number of pages2
    Publication statusPublished - 2012
    EventAgricultural and Applied Economics Association 2012 Annual Meeting - Seattle, United States
    Duration: 12 Aug 201214 Aug 2012
    http://www.aaea.org/2012am

    Conference

    ConferenceAgricultural and Applied Economics Association 2012 Annual Meeting
    CountryUnited States
    CitySeattle
    Period12/08/1214/08/12
    Internet address

    Keywords

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

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  • Research Output

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

    Verreth, D. M. I., 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 journalArticle

  • 1 Citation (Scopus)

    Cite this

    Verreth, D. M. I., Emvalomatis, G., Bunte, F. H. J., & Oude Lansink, A. (2012). Dynamic and static behaviour with respect to energy use and investment of Dutch Greenhouse firms. Poster session presented at Agricultural and Applied Economics Association 2012 Annual Meeting, Seattle, United States. http://ideas.repec.org/p/ags/aaea12/123508.html