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The Effect of Higher Energy Prices on the Competitive Position of Northeast Agriculture

Published online by Cambridge University Press:  10 May 2017

James W. Dunn
James W. Dunn*
Affiliation:
The Pennsylvania State University
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Extract

Major increases in energy prices since 1973 have raised considerable interest in the effect of a continuation of these increases on interregional competition. There is speculation in the Northeast that a general increase in energy prices will cause agricultural production to shift closer to the consumers. This production shift supposedly will lead to self-sufficiency in many products which were once grown in the Northeast and are now largely imported from other regions. This paper uses a simple interregional trade model to estimate the possible impact of higher energy prices on interregional competition, and on the Northeast in particular. It does this by assuming values for the relevant variables in the model and estimating the changes in the system. A range of values are used to estimate the sensitivity of the conclusions to the assumptions.

Type
Contributed Papers
Information
Journal of the Northeastern Agricultural Economics Council , Volume 10 , Issue 2 , October 1981 , pp. 83 - 86
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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References

Beilock, Richard P. and Dunn, James W. “An Econometric Model of the U.S. Potato Industry Emphasizing the Effect of Changes in Energy Costs.” Manuscript in progress, 1981.Google Scholar
Casavant, Kenneth and Whittlesey, Norman K. “Increasing Energy Prices: The Impact on Transportation Costs and the Regional Location of Agricultural Production.” Paper presented at Western Agricultural Economics Association Meetings, Moscow, Idaho, July 1974.Google Scholar
Dunn, James W. and Beard, Stanley M. Jr. “The Effect of Higher Energy Prices on Inter-regional Competition: The Case of Peaches.” Manuscript in progress, 1981.Google Scholar
Samuelson, Paul A. “Spatial Price Equilibrium and Linear Programming.” American Economic Review. 42 (1952), 283–303.Google Scholar
Tweeten, Luther G. Foundations of Farm Policy, Lincoln: University of Nebraska Press, 1970.Google Scholar