Energy alternatives in U. S. crop production
A mathematical model is used to show how farmers, who are especially sensitive to increases in fuel prices, can substitute other inputs in food production. The model relates four inputs to the flow of crop output - land, hired labor, mechanical energy, and chemical energy - and assesses the elasticities of substitution. The policy implications that emerge indicate that acreage allotments do not effectively limit crop output because mechanical and chemical energy can be easily substituted for land. The reverse of this means that more cropland can be used to make up for shortages in mechanical and chemical energy. Mechanical energy is shown to be the most flexible of the inputs, but policy changes should substitute human for mechanical labor cautiously. A preferred policy would be to emphasize efficient management and operation.
- OSTI ID:
- 6239891
- Journal Information:
- Econ. Rev.; (United States), Vol. 64:2
- Country of Publication:
- United States
- Language:
- English
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ENERGY POLICY
FUEL SUBSTITUTION
LAND USE
MATHEMATICAL MODELS
ECONOMICS
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