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Energy‐saving Technology Choices by Dutch Glasshouse Firms
Author(s) -
Pietola Kyösti,
Lansink Alfons Oude
Publication year - 2006
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.2006.00036.x
Subject(s) - energy (signal processing) , glazing , economics , capital (architecture) , revenue , panel data , econometrics , greenhouse , constant (computer programming) , microeconomics , industrial organization , statistics , computer science , mathematics , engineering , horticulture , finance , civil engineering , archaeology , biology , history , programming language
This paper estimates a sequence of energy‐saving technology choices by Dutch glasshouse firms. The model allows for time‐constant, firm‐specific effects and serial correlation of errors and it is estimated on panel data over the period 1991–1995. The unobserved error sequences are simulated in the model in such a way that they are consistent with the observed choices. The results suggest that positive revenue shocks encourage adoption of new technologies. The choices also exhibit firm‐specific persistency over time. An increase of the price of energy encourages the adoption of a highly efficient energy‐saving technology. The probability of investing in energy‐saving technologies also decreases with capital invested in structures (e.g. double glazing of glasshouses) and increases with capital in energy installations.