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Energy and Agriculture in Australia and New Zealand: Politics, Prices and Economic Outcomes

Author

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  • Scrimgeour, Frank G.

Abstract

Energy is a significant agricultural input in both Australia and New Zealand. Likewise agriculture in NZ Australia has the potential to produce significant energy sources - the extent to which depends on the price of competing energy sources - particularly oil. Higher energy prices, resulting in changes in land use in North America also have the potential to significantly impact the demand for, and prices received, for Australian and New Zealand agricultural commodities. This paper analyses recent statistics on agricultural energy consumption in both Australia and New Zealand and considers the relationship between energy prices and aggregate economic activity and economic activity in the farm and farm processing sector. It explores the impact of alternative energy price scenarios on Australian and NZ agriculture. It is informed by both CGE analysis of the NZ economy and results of international studies. The evolution of outcomes is sensitive to both global energy prices and the policy responses of the Australian and New Zealand Governments.

Suggested Citation

  • Scrimgeour, Frank G., 2007. "Energy and Agriculture in Australia and New Zealand: Politics, Prices and Economic Outcomes," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 9460, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare07:9460
    DOI: 10.22004/ag.econ.9460
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