Premium
Analysis of a Small Open Economy: The Case of Energy Prices in Canada
Author(s) -
Lopez Ramon E.
Publication year - 1982
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1240643
Subject(s) - renting , economics , agriculture , agricultural economics , energy (signal processing) , agricultural land , natural resource economics , small open economy , monetary economics , geography , statistics , mathematics , archaeology , political science , exchange rate , law
The analysis suggests that land rental price decrease in the long run as a consequence of higher energy prices. Energy demand from agriculture decreases if land and energy are substitute inputs. The necessary and sufficient conditions for expecting increasing average farm size, decreasing agricultural output, and number of farms also have been provided. The analysis considers a competitive equilibrium environment with specific proviso that land prices adjust in response to higher domestic energy prices. Simple expressions for calculating long‐run agricultural responses to higher domestic energy prices were derived and used in estimating such responses for Canadian agriculture.