A policy simulation of the impact of increases in both gasoline and electricity prices on the agricultural sector — An application of energy consumption survey data
The issues caused by increases in both gasoline and electricity prices have come to agricultural authorities' attention. This study aims to analyze the impact of the increases in both gasoline and electricity prices on the agricultural sector in Taiwan, and to see the policy effect of energy subsidies as well. Energy input data based on a Council of Agricultural (COA) report and energy consumption data based on a survey conducted by the Bureau of Energy (BOE) are used to explore the energy input cost of the agricultural sector (including the crop sector and livestock sector), and are further used for policy simulation with Taiwan's agricultural policy simulation system (TWAPS). The simulation results show that increases in both gasoline and electricity prices would have negative impact on industries with high energy input, such as the flower and dairy cow industries. Energy subsidy measures might slightly reduce the impact from gasoline and electricity price increases and further stabilize consumer prices, but the policy effect would not be significant. Moreover, study results also indicate that the impact from increasing energy prices on the agricultural sector would be increased by greater development of greenhouse farming.