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Impact Assessments of High Oil Prices on the Agro-Food System and the Role of Bioenergy Crops
Lee, Duu-Hwa,Lin, Hsin-Chun,Chang, Ching-Cheng,Hsu, Shih-Hsun,Chen, Chi-Chun,Sun, Jenny Chin-Hwa Korean Resource Economics Association 2007 자원·환경경제연구 Vol.16 No.3
In this study, multi-sectoral partial equilibrium and computable general equilibrium models of Taiwan are used to investigate the direct and indirect effects of energy price increases on overall economies and agro-food sector in Taiwan. The results suggest that agricultural prices, production cost would increase between 0.27% to 1.88%, and a reduction in GDP around 0.39% to 0.54 %. The negative impact on livestock sector is slightly higher than that on the crop sector. Negative impacts are also observed in the employment and wages. The rising oil price has the potential to discourage production of energy-intensive activity because of the possibility of substitution and adaptations. The growth rate of real GDP will shrink by 0.64% to 1.06% and CPI will increase by 1.17% to 1,95%. Both the agriculture and non-agricultural sector also respond by raising output prices by 0.80% to 1.33%. The rising international oil price has urged the government to take policy actions like using alternative fuels such as biodiesel, bioethanol, and adopting measures to cut down on energy consumptions mainly in transportation sectors in response to public concern over economic shocks.