Elprisets Påverkan på Produktionsbeslut och Energianvändning inom Jordbrukssektorn - En Mikroekonomisk Analys
(2024) NEKH03 20232Department of Economics
- Abstract
- This case study aims to answer how Swedish agriculture adapts to increased electricity prices, as well as the subsidy on electricity provided by the Swedish government in 2023. The study uses data from 10 interviews with firms in the sector and a microeconomic production theory for analysis.
The results indicate that the total production of firms is not affected by the increased price. However, all firms, except those nearly self-sufficient in electricity, make adjustments to their production to enhance efficiency in electricity usage. An important finding is that firms find it challenging to manage and adapt to the volatile electricity prices. To stabilize the factor price, they invest in their own electricity production. Additionally,... (More) - This case study aims to answer how Swedish agriculture adapts to increased electricity prices, as well as the subsidy on electricity provided by the Swedish government in 2023. The study uses data from 10 interviews with firms in the sector and a microeconomic production theory for analysis.
The results indicate that the total production of firms is not affected by the increased price. However, all firms, except those nearly self-sufficient in electricity, make adjustments to their production to enhance efficiency in electricity usage. An important finding is that firms find it challenging to manage and adapt to the volatile electricity prices. To stabilize the factor price, they invest in their own electricity production. Additionally, electricity production serves as a means to generate revenue due to the potential production surplus.
The study identifies various ways firms modify their production. Nonetheless, it concludes that the increased electricity price corresponds to increased costs within the firms, and the electricity subsidy serves as a form of consolation without causing further production distortions. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9146851
- author
- Holst, Ellen LU
- supervisor
- organization
- course
- NEKH03 20232
- year
- 2024
- type
- M2 - Bachelor Degree
- subject
- keywords
- Agriculture, Electricity, Subsidy, Production Theory
- language
- Swedish
- id
- 9146851
- date added to LUP
- 2024-04-16 09:29:32
- date last changed
- 2024-04-16 09:29:32
@misc{9146851,
abstract = {{This case study aims to answer how Swedish agriculture adapts to increased electricity prices, as well as the subsidy on electricity provided by the Swedish government in 2023. The study uses data from 10 interviews with firms in the sector and a microeconomic production theory for analysis.
The results indicate that the total production of firms is not affected by the increased price. However, all firms, except those nearly self-sufficient in electricity, make adjustments to their production to enhance efficiency in electricity usage. An important finding is that firms find it challenging to manage and adapt to the volatile electricity prices. To stabilize the factor price, they invest in their own electricity production. Additionally, electricity production serves as a means to generate revenue due to the potential production surplus.
The study identifies various ways firms modify their production. Nonetheless, it concludes that the increased electricity price corresponds to increased costs within the firms, and the electricity subsidy serves as a form of consolation without causing further production distortions.}},
author = {{Holst, Ellen}},
language = {{swe}},
note = {{Student Paper}},
title = {{Elprisets Påverkan på Produktionsbeslut och Energianvändning inom Jordbrukssektorn - En Mikroekonomisk Analys}},
year = {{2024}},
}