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Impacts of Biogas Production on the Production Factors Land and Labour – Current Effects, Possible Consequences and Further Research Needs

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  • Emmann, Carsten H.
  • Guenther-Lübbers, Welf
  • Theuvsen, Ludwig

Abstract

Among the members of the European Union (EU), Germany has the largest biogas produc-tion from agricultural sources. However, many other EU member states are creating the necessary conditions for rapid growth in this area. The German Renewable Energy Sources Act (EEG), which sets payments over a long time period for electricity supplied from renewa-ble sources, often serves as a benchmark. However, the continuing biogas boom has also led to criticism of the EEG in Germany. Opponents of biogas production point to the rising cost of leasing land, changes in the agricultural structure due to maize monoculture, increased competition with other agricultural branches (e.g., livestock husbandry) and the crowding out of classical food production. This paper examines the validity of these points of criticism. To this end, a written survey (n = 246) of farmers in six selected rural districts in the German state of Lower Saxony was carried out in 2010 and 2011. OLS regressions conducted on the data from these farmers showed that biogas production has led to a substantial increase in land lease prices for cropland. Furthermore, approximately 20% of the respondents report complete crowding out of established agricultural production forms, resulting in a decrease in the resource basis for downstream animal and plant processing industries. The results also indicate that, in extreme cases, such crowding out might even reduce the availability of em-ployment in rural areas. In closing, the paper highlights further research needs in order to provide comprehensive information (for every German state, the entire country of Germany and other EU member states) regarding the effects of biogas production on net employment, infrastructure and added value.

Suggested Citation

  • Emmann, Carsten H. & Guenther-Lübbers, Welf & Theuvsen, Ludwig, 2013. "Impacts of Biogas Production on the Production Factors Land and Labour – Current Effects, Possible Consequences and Further Research Needs," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 4(1), pages 1-13, July.
    • Handle: RePEc:ags:ijofsd:164781
    DOI: 10.22004/ag.econ.164781
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    References listed on IDEAS

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    1. Emmann, Carsten H. & Schaper, Christian & Theuvsen, Ludwig, 2012. "Der Markt für Bioenergie 2012," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 61(Supplemen), pages 1-20, February.
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    1. Guenther-Lubbers, Welf & Theuvsen, Ludwig, 2014. "Regionalökonomische Effekte Der Niedersächsischen Biogasproduktion," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187426, German Association of Agricultural Economists (GEWISOLA).
    2. Andreas Eder & Bernhard Mahlberg & Bernhard Stürmer, 2021. "Measuring and explaining productivity growth of renewable energy producers: An empirical study of Austrian biogas plants," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(1), pages 37-63, February.
    3. Olena Myrna & Martin Odening & Matthias Ritter, 2019. "The Influence of Wind Energy and Biogas on Farmland Prices," Land, MDPI, vol. 8(1), pages 1-14, January.
    4. Zuzana LAJDOVA & Jan LAJDA & Peter BIELIK, 2016. "The impact of the biogas industry on agricultural sector in Germany," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(1), pages 1-8.
    5. Guenther-Lübbers, W. & Theuvsen, L., 2015. "Regionalökonomische Effekte der niedersächsischen Biogasproduktion," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 50, March.
    6. Venus, Terese E. & Strauss, Felix & Venus, Thomas J. & Sauer, Johannes, 2021. "Understanding stakeholder preferences for future biogas development in Germany," Land Use Policy, Elsevier, vol. 109(C).
    7. Zuzana LAJDOVA & Jan LAJDA & Jaroslav KAPUSTA & Peter BIELIK, 2016. "Consequences of maize cultivation intended for biogas production," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(12), pages 543-549.
    8. Eugenio Demartini & Anna Gaviglio & Marco Gelati & Daniele Cavicchioli, 2016. "The Effect of Biogas Production on Farmland Rental Prices: Empirical Evidences from Northern Italy," Energies, MDPI, vol. 9(11), pages 1-23, November.
    9. Haverkamp, Matthias & Henke, Sören & Kleinschmit, Christian & Möhring, Bernhard & Müller, Henrike & Mußhoff, Oliver & Rosenkranz, Lydia & Seintsch, Björn & Schlosser, Katharina & Theuvsen, Ludwig, 2014. "Vergleichende Bewertung der Nutzung von Biomasse: Ergebnisse aus den Bioenergieregionen Göttingen und BERTA," DARE Discussion Papers 1405, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    10. Bartolini, Fabio & Gava, Oriana & Brunori, Gianluca, 2017. "Biogas and EU's 2020 targets: Evidence from a regional case study in Italy," Energy Policy, Elsevier, vol. 109(C), pages 510-519.
    11. Xueqing Yang & Yang Liu & Mei Wang & Alberto Bezama & Daniela Thrän, 2021. "Identifying the Necessities of Regional-Based Analysis to Study Germany’s Biogas Production Development under Energy Transition," Land, MDPI, vol. 10(2), pages 1-20, February.

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